Solve the Problem $60: \$ 8700$ $70: \$ 12,600$

Multiple Choice

Solve the problem.
-An insurance company says that at age 50 one must choose to take $10,000 at age 60, $30,000 at 70, Or $50,000 at 80 ($0 death benefit) . The probability of living from 50 to 60 is 0.87, from 50 to 70, 0.62, and from 50 to 80, 0.42. Find the expected value at each age.

A) $60: \$ 8700$
$70: \$ 12,600$
$80: \$ 21,000$

B) $60: \$ 6200$
$70: \$ 18,600$
$80: \$ 21,000$

C) 60: $\$ 8700$
70: $\$ 18,600$
80: \$21,000

D) 60: $\$ 8700$
$70: \$ 26,100$
80: $\$ 43,500$