Problem 3. A life (55) purchases a portfolio containing two policies: (i) a 10-year deferred 10-year term life insurance with annually increasing benefit at rate p per year (if death occurs in the n-th year, n 11, , 20, the death benefit is p (n-10)); (ii) a 10-year term life annuity-due of 300 per year (a) Explain in words or by using tables the future cash flows of the portfolio for the insured life (b) From the mortality table, you can get 55-12.2758, 65-103577, (IA)to:T -0.6403 and oEss-0.4652. Express the EPV of the portfolio in term of p. c)Suppose that the EPV of the portfolio (result in part (b) equals to the EPV of a whole life annuity-immediate with level benefit amount p per year issued to (55). Calculate p. Problem 3. A life (55) purchases a portfolio containing two policies: (i) a 10-year deferred 10-year term life insurance with annually increasing benefit at rate p per year (if death occurs in the n-th year, n 11, , 20, the death benefit is p (n-10)); (ii) a 10-year term life annuity-due of 300 per year (a) Explain in words or by using tables the future cash flows of the portfolio for the insured life (b) From the mortality table, you can get 55-12.2758, 65-103577, (IA)to:T -0.6403 and oEss-0.4652. Express the EPV of the portfolio in term of p. c)Suppose that the EPV of the portfolio (result in part (b) equals to the EPV of a whole life annuity-immediate with level benefit amount p per year issued to (55). Calculate p