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19 March, 15:26

A 40-year-old man in the U. S. has a 0.24% risk of dying during the next year. An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar.

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  1. 19 March, 16:56
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    0.24%=.0024

    Expected value=100000 x 0.0024=$240
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