38. Refer to the set up in the previous question. Decompose the gain in the following orders: (a) interest, then expenses, and finally mortality; (b) mortality, expenses, and finally interest; (c) mortality, interest, and finally expenses. 37. (MLC Sample #300) For a fully discrete 20-year term life insurance of 10,000 on (40), you are given: (i) The gross premium is 87. (ii) Values in year 4: Anticipated Actual Expenses as a percent of premium 3% 2.5% 943 0.0035 0.0025 Annual effective rate of interest 5% 4% (ii) Reserves, which are gross premium reserves, are End of year Reserve 3 83.30 4 141.57 A company issued the 20-year term life insurance to 850 lives age 40 with independent future lifetimes. At the end of the 3rd year 800 insurances remain in force. Calculate the total gain from mortality, interest and expenses in year 4 from the 800 insurances. (A) 6,850 (B) 6,910 (C) 6,970 (D) 7,030 (E) 7,090