Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the expected profit or loss for the insurance company? The insurance company can expect a(n) $ million (Type an integer or decimal rounded to one decimal place as needed.)
Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the expected profit or loss for the insurance company? The insurance company can expect a(n) $ million (Type an integer or decimal rounded to one decimal place as needed.)
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
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Transcribed Image Text:Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate
of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the
expected profit or loss for the insurance company?
The insurance company can expect a(n) $
million
(Type an integer or decimal rounded to one decimal place as needed.)
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