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1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that...

1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that he will live for another year is 0.985, find the company's expected net gain.

2.A man wishes to purchase a life insurance policy that will pay the beneficiary $20,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.95. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expected profit is zero.

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