A special endowment assurance policy is issued to a male aged 55 and afemale aged 50 with a term of 20 years. A benefit of $500,000 is payableimmediately on the last death of the two lives. There is a survival benefit of$600,000 if both of them are alive; if only one of them is alive, the survivalbenefit is $400,000. Premiums are payable annually in advance over the termof the policy as long as one of them is alive. The interest rate is 4% perannum and the mortality basis is PA92C20. Calculate the net annualpremium for this policy. Correct your answer to the nearest cent.

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Answered: A special endowment assurance policy is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Annuity
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