Question: Consider a two-year endowment policy with face amount equal to $10,000 for a 50-year-old with an interest rate of 5%. (a). Using Table 15.3, calculate

Consider a two-year endowment policy with face amount equal to $10,000 for a 50-year-old with an interest rate of 5%.

(a). Using Table 15.3, calculate the net level premium for the two-year endowment policy with face amount equal to $10,000 for a 50-year-old with an interest rate of 5%.

(b). Ignoring expenses, what would be the policy's cash value equal after one year?

Table 15.3

Probability dead at 50: 0.00671

Probability dead at 51: 0.00730

Probability dead at 52: 0.00796

Probability dead at 53: 0.00871

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