SOLUTION: b) An online insurance site offers a term insurance policy that will pay $100,000 if a 25-year-old man dies within the next 5 years. The cost is $180 per year. So the insurance com
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Question 1134448: b) An online insurance site offers a term insurance policy that will pay $100,000 if a 25-year-old man dies within the next 5 years. The cost is $180 per year. So the insurance company will take in $900 from this policy if the man does not die within five years. If he does die, the company must pay $100,000. Its loss depends on how many premiums were paid, as follows.
Age at death
25
26
27
28
29
Loss
$99,820
$99,640
$99,460
$99,280
$99,100
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