document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1099547>Question 1099547</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 37-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $390. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #714204 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=714204\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A 37-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $390. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places. <BR>\n" );
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document.write( "Random Co gains::..-99,610.......... 390<BR>\n" );
document.write( "Probabilities::......0.000948 ......0.999052<BR>\n" );
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document.write( "E(x) = -94.43 + 389.63 = $295.20<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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