Solve the Problem $60: \$ 8700$ $70: \$ 12,600$

question 12

Multiple Choice

Solve the problem.
-An insurance company says that at age 50 one must choose to take $10,000 at age 60, $30,000 at 70, Or $50,000 at 80 ($0 death benefit) . The probability of living from 50 to 60 is 0.87, from 50 to 70, 0.62, and from 50 to 80, 0.42. Find the expected value at each age.

• A) \( 60: \$ 8700 \)
• \( 70: \$ 12,600 \)
• \( 80: \$ 21,000 \)
• B) \( 60: \$ 6200 \)
• \( 70: \$ 18,600 \)
• \( 80: \$ 21,000 \)
• C) 60: \( \$ 8700 \)
• 70: \( \$ 18,600 \)
• 80: \$21,000
• D) 60: \( \$ 8700 \)
• \( 70: \$ 26,100 \)
• 80: \( \$ 43,500 \)

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