Question by kdocimo90: What should the insurance company charge the woman for the policy if it would like to make an expected profit.?
An insurance company plans to sell a $ 150,000 one year life insurance policy to a 38-year old woman. On the basis of mortality rates for women of her age and back-ground, the insurance company determines that the probability of the woman dying in the next year is 0.00104. What should the insurance company charge the woman for the policy if it would like to make an expected profit of $ 45?

Best answer:

Answer by fcas80
45 = P – (150,000 * .00104)

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