Answer:
$3,245
Step-by-step explanation:
For a money saved at Simple Interest,
Amount =Simple Interest+Principal
Principal, P=$2750
Rate, r=3%
Time, T=6 Years
=$495
Therefore, Amount in Erin's Account after 6 years =2750+495
=$3,245
Answer:
The question is about the least amount to charge each policyholder as premium
The least premium is $484
Step-by-step explanation:
The least amount of premium to charge for this policy is the sum of the expected values of outcome of both instances of policyholder dying before the age of 70 and living after the age of 70 years
expected value of dying before 70 years=payout*probability=$24,200*2%=$484
Expected of living after 70=payout*probability=$0*98%=$0
sum of expected values=$484+$0=$484
Note that payout is nil if policyholder lives beyond 70 years
The premium of $573 means that a profit of $89 is recorded
Answer:
yea only ofc
Step-by-step explanation:
