Real-World Applicationshard
0:00.0

A 1-year term life insurance policy pays \\100,000attheendoftheyearifthepolicyholderdies.Theprobabilityofdeathduringtheyearisat the end of the year if the policyholder dies. The probability of death during the year isq_x = 0.005,andtheannualeffectiveinterestrateis, and the annual effective interest rate is i = 4\%$. What is the net single premium (expected present value of the benefit) for this policy?