2.5. The premiums for a 25 year endowment insurance of $6000 on a life aged 40 are payable yearly in advance. Expenses to be allowed for are initial expenses of $200, renewal expenses of 0.3% of the sum insured, and 5% of the annual premium. The renewal expenses are incurred every year. Based on a 6% annual interest rate, find

a) the net annual premium

b) the gross annual premium.