3. (i) Some years ago a life insurance company issued 25 year term as- surances to lives then age 40 years old exact. Each policy provides 75,000 payable on death at the end of policy year during the 25 year term. There were three deaths during the 20th policy year and the num- ber of policies in force at the end of that year was 325. There were no exits other than deaths during that year. Calculate, showing all workings, the mortality profit or loss during the 20th policy year. Basis: Mortality: AM92 Ultimate Interest 4 % p.a. effective Expenses: None (ii) Briefly explain your answer in Q3(i). [15 minutes.] [3 minutes.]