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Financial Markets ServicesTU Board 2025

Mr. Hari Sharma is now 45 years old. He is willing to purchase one year term life policy of Rs 500,000. Assume that there is probability of 1 percent that a person dump at the age 45 and the cost of…

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Mr. Hari Sharma is now 45 years old. He is willing to purchase one year term life policy of Rs 500,000. Assume that there is probability of 1 percent that a person dump at the age 45 and the cost of money 12 percent. What is the fair amount of premium that Mr. Hari must pay for his policy?

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