A 5-year term life insurance that pays a benefit of $25,000 at the end of the year of death is issued to a life selected at age 41. The annual gross premium, P, is determined using the equivalence principle and is due the beginning of each of the 5 years. The insurance company pays a 40% commission to the broker at the issue of the policy and renewal commissions equal to 2% of premium at the start subsequent years.

i. Provide and expression for the net loss at issue random variable

ii. Provide and expression for the gross loss at issue random variable

iii. Calculate the gross premium P.

iv. Determine the PV of the gross loss if the life dies at time t = 3.3