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1. Sally and Mary are sisters. Sally owns a life insurance policy on Mary and has named Mary's only child Tom as the beneficiary. Sally
1. Sally and Mary are sisters. Sally owns a life insurance policy on Mary and has named Mary's only child Tom as the beneficiary. Sally transfers the policy to Tom on January 1st of this year. The policy terminal reserve is $25,000 on July 1st of last year and $30,000 on July 1st of this year. If Sally paid the full $3,000 annual premium on July 1st of this year, the value of the policy for gift tax purposes is ___________. Calculate the interpolated terminal reserve below.
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