Homework Help: math

Posted by anonymous on Sunday, July 10, 2011 at 5:59pm.

A 30 year old can buy $25,000 life insurance for $15/month. If the probability that the 30 year old will die is 0.14% find the insurance companies expected profit for the policy. (I want this in terms of their annual expectation-not monthly expectation)

math - bobpursley, Sunday, July 10, 2011 at 6:16pm
EP=15*12*(.9986)-25000*.0014

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