A Life Insurance Company founded upon the American Experience Table has a thousand policies averaging $ 2000 on lives at age 25. From the experience table, it is found that of 89,032 alive at age 25: 88, 000 are alive at age 26. Find the upper and lower values of the amount that the company will have to pay out in insurance during the year.

Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter2: Working With Real Numbers
Section2.3: Rules For Addition
Problem 8P
icon
Related questions
Question
A Life Insurance Company founded upon the American Experience Table has a thousand policies
averaging $ 2000 on lives at age 25. From the experience table, it is found that of 89,032 alive at age 25:
88, 000 are alive at age 26. Find the upper and lower values of the amount that the company will have
to pay out in insurance during the year.
Transcribed Image Text:A Life Insurance Company founded upon the American Experience Table has a thousand policies averaging $ 2000 on lives at age 25. From the experience table, it is found that of 89,032 alive at age 25: 88, 000 are alive at age 26. Find the upper and lower values of the amount that the company will have to pay out in insurance during the year.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Recommended textbooks for you
Algebra: Structure And Method, Book 1
Algebra: Structure And Method, Book 1
Algebra
ISBN:
9780395977224
Author:
Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:
McDougal Littell
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9780998625720
Author:
Lynn Marecek
Publisher:
OpenStax College
Trigonometry (MindTap Course List)
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781337278461
Author:
Ron Larson
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781337282291
Author:
Ron Larson
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill