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A life aged 45 purchases a fully discrete 20-year endowment insurance with sum insured $100 000. Calculate the annual premium using the equivalence principle and

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A life aged 45 purchases a fully discrete 20-year endowment insurance with sum insured $100 000. Calculate the annual premium using the equivalence principle and the following assumptions. 1 Commission is 10% of the first premium and 2% of each subsequent premium. Other expenses are $50 at issue, and $8 at each subsequent premium date. Mortality follows the Standard Ultimate Life Table at i 5%

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