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Lunna [17]
3 years ago
11

As a fringe benefit, Dennis Taylor receives a $31,000 life insurance policy from his employer. The probability that Dennis will

live another year is 0.982. If he purchases the same coverage for himself, what is the minimum amount that he can expect to pay for the policy? (Enter your answer to the nearest cent.)
Mathematics
1 answer:
Paha777 [63]3 years ago
3 0
In order to  see the probaability of this we need to do an easy calculation here:
If  X<span> is the price for the policy, then we proceed like this: 

</span>0.982x = 0.0275*<span>31,000
</span><span>
x = 0.0275*</span><span>31,000</span><span>/0.982 

Minimum ammount he can expect to pay = $868.12 </span>
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