5. Consider a 3-year life insurance on two independent lives aged (50) and (55). A last survivor insurance pays 1,000 at the end of year of the second death or at the end of the third year, whichever occurs first. Assuming interest rate is 6% per annum and mortality is as per question a) Calculate the APV of the insurance. (2 marks) b) Premium will only be paid if both are alive. Calculate the net premium