3. For a basic universal life policy, you are given: (i) The account value at t=10 (before premium payment and deductions) is $10,000. (ii) The policyholder pays premiums at t=10 and t=11. Each premium is $500. (iii) The total expense charge is 1% of each premium. (iv) The costs of insurance deducted at t=10 and t=11 are $20 and $15, respectively. (v) The credited interest rate over the period from t=10 to t=12 is 2% per annum effective. Assume the policy is still in force at t=12. (a) Calculate the account value at t=12 if the length of each time step is one year. (b) Calculate the account value at t=12 if the length of each time step is one month