An insurance company issues a special policy to (65) with the following benefits:

(i) A death benefit of 100,000, payable at the end of year of death, provided death occurs before age 85.

(ii) A whole life annuity-due of 45,000 per year starting on the policyholder’s 85th birthday. You are also given: • Annual level premiums of P are payable for 20 years. • Premiums are determined using the equivalence principle. • Mortality follows the Standard Ultimate Life Table. • i = 0.05.

Calculate P.

A. 7670 

B. 7870 

C. 8070 

D. 8270 

E. 8470