According the 2001 CSO mortality table, the yearly probability of dyin

According the 2001 CSO mortality table, the yearly probability of dying for a 40 year-old man is .00165. The present value of $1 one year from today, assuming a 5.5 percent interest rate, is .9479.

What is the net single premium per $1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.
A) $1.56
B) $2.45
C) $7.18
D) $952.81

ANSWER

Answer: A