The following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 6.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. Country Japan Canada U.K. U.S. Mexico China India Life Expectancy: Male 80 80 79 76 73 74 64 Life Expectancy: Female 87 84 83 81 79 77 68 Calculate the life insurance monthly premium that a 40-year-old female in Japan would pay for a $7,000,000 policy. ( Round your answer to the nearest cent.) $ ______

The following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 6.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. Country Japan Canada U.K. U.S. Mexico China India Life Expectancy: Male 80 80 79 76 73 74 64 Life Expectancy: Female 87 84 83 81 79 77 68 Calculate the life insurance monthly premium that a 40-year-old female in Japan would pay for a $7,000,000 policy. ( Round your answer to the nearest cent.) $ ______

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter20: Short-term Financing

Section: Chapter Questions

Problem 3BIC

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Question

The following table shows the average life expectancies in several countries.

Assume that all premiums you calculate are

based on end-of-month deposits in a

fund yielding 6.8% annual interest compounded monthly

to be paid out when a person reaches the life expectancy.

Country	Japan	Canada	U.K.	U.S.	Mexico	China	India
Life Expectancy: Male	80	80	79	76	73	74	64
Life Expectancy: Female	87	84	83	81	79	77	68

Calculate the life insurance monthly

premium that a 40-year-old female in Japan would pay for a $7,000,000 policy. (

Round your answer to the nearest cent.)

$ ______

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