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A life insurance company sells a 3-year terms policy with death benefit (DB) of $100,000 for annual premium of $75. Assu
Posted: Wed Mar 30, 2022 3:42 pm
by answerhappygod
- A Life Insurance Company Sells A 3 Year Terms Policy With Death Benefit Db Of 100 000 For Annual Premium Of 75 Assu 1 (92.8 KiB) Viewed 40 times
A life insurance
company sells a 3-year terms policy with death benefit (DB) of $100,000 for annual premium of $75. Assume the mortality (death) rate assume she is alive at the beginning of the year for the next 3 years are: 0005, 0007, and .001 respectively and there isn't any other decrement or other CF. Assume Premiums are at year start and DB is paid at year end. Compute the
company's PV of profit using 4% interest, round to nearest cents.