A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy? Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy? Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter1: Introduction To Algebra

Section1.5: Translating Sentences Into Equations

Problem 30WE

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Question

A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy?

Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

Expert Solution