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Solve the Problem $50,000,450\$ 50,000,450 Of $25,000\$ 25,000 , and 900 Of $10,000\$ 10,000

Question 53

Multiple Choice

Solve the problem.
-An insurance company has written 89 policies of $50,000,450\$ 50,000,450 of $25,000\$ 25,000 , and 900 of $10,000\$ 10,000 on people of age 20. If the probability that a person will die at age 20 is .001, how much can the company expect to pay during the year the policies were written?


A) $0\$ 0
B) $2470\$ 2470
C) $247,000\$ 247,000
D) $24,700\$ 24,700

Correct Answer:

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