Suppose that a life insurance company insures 5700 40-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $200 per year, and the death benefit is $45,000. How much can the company expect to gain (or lose) in a year?

Suppose that a life insurance company insures 5700 40-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $200 per year, and the death benefit is $45,000. How much can the company expect to gain (or lose) in a year?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

Question 12 of 18 You get paid a base salary of $2,000 per month and a graduated commission on sales. You receive 2.5% on the first $30,000 of sales, 3.25% on the next $50,000 of sales and 5% thereafter. a. Calculate your total pay for a month where your sales are $90,000. b. What were your sales in a month where you received $6,875 in commissions? c. What single rate of commission would have given you the same commission of $6,875 based on your sales from part (b)? % Round to two decimal places if applicable SAVE PRO 16°C Cloudy hp
In question # 43, what is the amount of mortgage and how much is the total cost of interest over 30 years?
How much interest will Lexi have to pay if the gas company charges 1.5% late fee a month and she is one month late in paying her $299.00 gas bill?
4. A computer system de preciates at an average rate of 4% per month. If the value of the computer system was originally $1200, in how many months will it be valued at $750?
Suppose a mutual fund has a portfolio of stocks that have a market value of $10.75 billion and the company has 900 million shares of stock. What is the net asset value (in dollars) of a share of the mutual fund?
Suppose you owe $18,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 18,000(1.02 ✕ 0.95)t dollars. How many payments will you have to make to get the balance below $100?
"On his tax return this year, Steve reports $575 income from interest. Assuming an interest rate of about 4.6%, about how much does Steve have invested?"
Mutual Fund X owns 0.5% of the total stock of Company Y. In one particular year, Company Y announces annual profits of $12,000,000, and decides to pay dividends to its shareholders at a rate of 15% of its annual profits. How much will Mutual Fund X receive in the form of dividends from Company Y? Give your answer in dollars.
Suppose you deposit $5,000 into an account earning 5% per annum. How many years will it take for your account to be worth $7,500?
You are considering in investing one of the two options: Investment A requires a $80,000 upfront payment and generates $59,000 annually, Investment B requires a $68,000 upfront payment. How much should Investment B generate annually so that the total returns from Investment A and B become equal after 3 years?
This year, FCF Inc. has earnings before interest and taxes of $9,710,000, depreciation expenses of $1,000,000, capital expenditures of $1,200,000, and has increased its net working capital by $600,000. If its tax rate is 35%, what is its free cash flow? The company's free cash flow is $. (Round to two decimal places.)
Suppose that you have $9,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 40% of its original value. During the second year, your investment at the end of year one increases by 50%. Your advisor tells you that there must have been a 10% overall increase of your original $9,000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $9,000 investment? Select the correct choice below and fill in the answer boxes to complete your choice. (Type a whole number.) O A. No, there is an actual percent gain of % O B. Yes, there is an actual percent loss of % O C. Yes, there is an actual percent gain of % O D. No, there is an actual percent loss of %