According the 2001 CSO Mortality Table,the Yearly Probability of Dying

According the 2001 CSO mortality table,the yearly probability of dying for a 40 year-old man is .00165.The present value of $1 one year from today,assuming a 5.5 percent interest rate,is .9479.What is the net single premium per $1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.

A) $1.56
B) $2.45
C) $7.18
D) $952.81

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Sign up to view answer