1. Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium

was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1

deposited at the start of the year for 10 years, assuming 5 percent interest, is $13.207. What is the

traditional net cost of this policy, per thousand per year, over the first 10 years the policy is in

force?

2. Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium

was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1

deposited at the start of the year for 10 years, assuming 5 percent interest, is $13.207. If the

premiums were invested at 5 percent interest for 10 years, the premiums would grow to

$16,878.55. Assuming 5 percent interest, what is the surrender cost of this policy, per thousand

per year, over the first 10 years the policy is in force?

3. Beth purchased a $50,000 nonparticipating whole life insurance policy. The annual premium

was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1

deposited at the start of the year for 10 years, assuming 5 percent interest, is $13.207. If the

premiums were invested at 5 percent interest for 10 years, the premiums would grow to

$16,878.55. Assuming 5 percent interest, what is the net payment cost of this policy, per

thousand per year, over the first 10 years the policy is in force?