95. Important Note:

All preliminary calculations should be correct to two decimal places (with rounding) and the final answer correct to the nearest unit (with rounding).

Calculate the return on gross premium at the end of five years for a single premium Investment-linked Life Insurance policy purchased, based on the information given below.

Single premium = S$30,000

Bid price at inception = S$1.50

Bid-offer spread = 3% throughout

Growth rate of unit values = 6% per annum (p.a.)

Number of units remaining in the policy = 19,104.84

A. 5% p.a.

B. 6% p.a.

C. 7% p.a.

D. 8% p.a.