Homework Help: math

Posted by TJ on Thursday, October 8, 2009 at 9:45pm.

A 28-year-old man pays $192 for a one-year life insurance policy with coverage of $150,000. If the probability that he will live through the year is 0.9989, what is the expected value for the insurance policy?

math - MathMate, Thursday, October 8, 2009 at 10:48pm
I have not done actuarial science, but I would be tempted to calculate it as
192/(1-0.9989)=$174,545.
I wonder how the number 0.9989 was calculated.

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