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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:A 20-year endowment insurance for a 30-year old pays $80,000 at the
moment of death or at age 50, whichever comes first. You are given:
i)
ii)
Mortality is uniformly distributed with w = 120
6 = 0.04
Calculate the expected present value of this insurance.
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