An survival model is given by the survival function S₁(x) = eSuppose a whole life insurance policy with a benefit of $118250 payable immediately at the time of death of the insured life has a continuouslycompound interest rate 8 -0.026.(a) What is the present value for the benefit if the policy is purchased at age 42?EPV = $a=0.0008(b) What is the standard deviation of the present value of this insurance benefit if the policy is purchased at age 42?Note: Round your answer to two decimal places.

The survival function is given by:The benefit payable is $118250Compound interest rate,

Answered: An survival model is given by the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Investment A has a future value of $600. Investment B has a future value of $500. Both have the same present value. All else equal, which one has the higher interest rate? Select one: a. B b. A c. A=B Clear my choice
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The face value of the insurance policy is RO 400000 and the rate of insurance premium is RO 25 per thousand and the premium paid monthly. Which one of the following is premium paid monthly? a. RO 510 O b. RO 875 O c. None of the options O d. RO 260
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!!!!!!
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An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an -Select-finiteinfiniteCorrect 1 of Item 1 series. The equation is: A -Select-preferredcommonCorrect 2 of Item 1 stock with no maturity is an example of a perpetuity. Quantitative Problem: You own a security that provides an annual dividend of $160 forever. The security’s annual return is 7%. What is the present value of this security? Round your answer to the nearest cent.$
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USING FORMULAS, NO TABLES
Find the expected net profit of an insurance company on a life-insurance policy whose death benefit is $1,000,000 if the annual premium for the policy is $2000 and the chance of the customer dying within the next year is 0.002. Interpret. (show work)
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