Answer:
The expected loss is
$6980
Step-by-step explanation:
From the question we are told that
The chance that a customer survives another year is p =0.96
The rate at which the policy is sold is r = $85 per month
The rate at which the policy is sold per year is R = $85 * 12 per year
= $1020 per year
The amount paid the the beneficiaries is
$200,000
The expected value of profit/loss for this company is mathematically represented as
![E = R -[ (1-p)*A]](https://tex.z-dn.net/?f=E%20%20%3D%20%20R%20-%5B%20%281-p%29%2AA%5D)
substituting values
![E = 1020 -[ (1-0.96)*200000]](https://tex.z-dn.net/?f=E%20%20%3D%20%201020%20-%5B%20%281-0.96%29%2A200000%5D)

- $6980
The negative sign shows that it is a loss
Subtract 7.75 by both sides then. subtract y both sides. you need x and y to be on one side. 5/2x-y=-7.75
The formula is
A=p (1+r/k)^kt
A future value?
P present value 519
R interest rate 0.042
K compounded daily 365
T time 17 years
A=519×(1+0.042÷365)^(365×17)
A=1,059.83
Hope it helps!