4. [Total: 13 marks] (a) [5 marks] At age 55, Sarah buys a 7-year temporary life annuity of $20,000 per annum to be paid at the end of each year for her retirement. Find a net single premium for Sarah, if the first payment is made at age 65. Assume that r(1) = 5%. Page 2 of 3 PAPER CODE S2 2020 Student ID Number: (b) (5 marks] Sarah's father, Stephen, buys a $35,000 whole life insurance at age 90. Assume that r(1) = 4%. Find the net single premium of this policy. (c) [3 marks] If Stephen buys a $35,000 whole life ordinary annuity at age 90, instead of a whole life insurance, what is the net single premium of the policy? Assume that r(1) = 4%. 4. [Total: 13 marks] (a) [5 marks] At age 55, Sarah buys a 7-year temporary life annuity of $20,000 per annum to be paid at the end of each year for her retirement. Find a net single premium for Sarah, if the first payment is made at age 65. Assume that r(1) = 5%. Page 2 of 3 PAPER CODE S2 2020 Student ID Number: (b) (5 marks] Sarah's father, Stephen, buys a $35,000 whole life insurance at age 90. Assume that r(1) = 4%. Find the net single premium of this policy. (c) [3 marks] If Stephen buys a $35,000 whole life ordinary annuity at age 90, instead of a whole life insurance, what is the net single premium of the policy? Assume that r(1) = 4%