5. [6 marks] An insurer calculates premiums for permanent disability insurance using the model described in class. A professor, aged 50, buys a 5 year term policy that provides a benefit of $80,000 if that professor leaves the healthy state (i.e. becomes permanently disabled or dies). If permanent disability is state 1 and death is state 2, and if the force of interest is 5% and Mot = .07 and 4m2 = .15, what is the APV for this benefit? 5. [6 marks] An insurer calculates premiums for permanent disability insurance using the model described in class. A professor, aged 50, buys a 5 year term policy that provides a benefit of $80,000 if that professor leaves the healthy state (i.e. becomes permanently disabled or dies). If permanent disability is state 1 and death is state 2, and if the force of interest is 5% and Mot = .07 and 4m2 = .15, what is the APV for this benefit