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Solve the Problem $10,000\$ 10,000 At Age 60,$30,00060, \$ 30,000 At 70 , Or

Question 111

Multiple Choice

Solve the problem.
-An insurance company says that at age 50 one must choose to take $10,000\$ 10,000 at age 60,$30,00060, \$ 30,000 at 70 , or $50,000\$ 50,000 at 80 ( $0\$ 0 death benefit) . The probability of living from 50 to 60 is .83 , from 50 to 70 , .61, and from 50 to 80,0.4780,0.47 . Find the expected value at each age.


A) 60 - $8300
70 - $14,100
80 - $23,500
B) 60 - $6100
70 - $18,300
80 - $23,500
C) 60 - $8300
70 - $24,900
80 - $41,500
D) 60 - $8300
70 - $18,300
80 - $23,500

Correct Answer:

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