Question Consider a 25-year regular premium endowment assurance policy with a sum assured of £75,000 payable on maturity (or at the end of the year of earlier death), taken out by a 45-year old. Expenses are 75% of the first premium and 5% of each subsequent premium, plus an initial expense of £250. Given a gross annual premium of £2,132 and a gross premium reserve at the end of the 10th policy year of £20,898, calculate the gross premium reserve at the end of the 11th policy year. Assume AM92 Select mortality and 4% pa interest.

Question Consider a 25-year regular premium endowment assurance policy with a sum assured of £75,000 payable on maturity (or at the end of the year of earlier death), taken out by a 45-year old. Expenses are 75% of the first premium and 5% of each subsequent premium, plus an initial expense of £250. Given a gross annual premium of £2,132 and a gross premium reserve at the end of the 10th policy year of £20,898, calculate the gross premium reserve at the end of the 11th policy year. Assume AM92 Select mortality and 4% pa interest.

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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