Math Problem..?

Question

An insurance company has written 81 policies of $50,000, 480 of $25,000, and 945 of $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?

Thanks!

Answer 1

Total amount of policies issued
=$50,000*81+$25,000*480+$10,000*945
=$4050000+$12000000+$9450000
=$25500000
Hence expected payment
=0.001*$25550000
=$25,550

Answer 2

Think of it this way...
For policies of $50,000, 0.001 X 81 = 0.081 policies will need to be paid by the insurance company.

For $250,000, 0.001 X 480 = 0.48 policies will need to be paid.

And $10,000, 0.001*945 = 0.945 policies.

So total number?
= No. of policies X amount for policy
= 0.081 X 50,000 + 0.48 X 25,000 etc.

I'm not going to give you the numerical answer, so that you can try this out yourself. Hope it helps!

Answer 3

Total number of policies are 81 + 480 + 945 = 1506.

.001 * 1506 = 1.506

Total value of policies = (81 * 50K) + (480 * 25K) + (945 * 10K) = 25,500K

25500000 / 1506 = 16932.27092

16932.27092 * 1.506 = 25500

Answer 4

an asian askin a math problem thatsa first