Question: A select life aged 45 purchases a fully discrete 20-year endow-ment insurance with sum insured $100000. Calculate the annual premium using the following assumptions. (i)

A select life aged 45 purchases a fully discrete 20-year endow-ment insurance with sum insured $100000. Calculate the annual premium using the following assumptions. (i) Commission is 10% of the first premium and 2% of each subsequent premium. (ii) Other expenses are$50 a tissue, and $8 at each subsequent premium date. (iii) Mortality follows the Standard Select Life Table. (iv) Interest is 5% per year.

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