On the day his child turned age 1,Sam bought a scholarship plan that pays $8000 on the day his child turns 18 but only if his child attends university.The probability of a 1-year old attending university at age 18 is 55%,while the probability of a 1-year old surviving to age 18 is 0.989.If j₁ = 4%,what is a fair price to pay for this scholarship plan (ignoring expenses)?

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The Answer of On the day his child turned age 1,Sam bought a scholarship plan that pays $8000 on the day his child turns 18 but only if his child attends university.The probability of a 1-year old attending university at age 18 is 55%,while the probability of a 1-year old surviving to age 18 is 0.989.If j₁ = 4%,what is a fair price to pay for this scholarship plan (ignoring expenses)?

On the Day His Child Turned Age 1,Sam Bought a Scholarship