Solve the Problem

question 9

Multiple Choice

Solve the problem. Round your answer to 2 decimal places when necessary.
-The overall U.S. death rate for 60 year-olds is approximately 12 deaths per 1000 people. Suppose that a life insurance company insures 2000 60-year-old people. The cost of the premium is $760 per
Year, and the death benefit is $60,000. What is the expected profit or loss for the insurance
Company?

• A)$61,760 profit
• B)$200,000 profit
• C)$80,000 profit
• D)$1,440,000 loss