A life office sells 5-year term assurance policies to lives aged 60. Each policy has a sum assured of 10,000 payable at the end of the year of death. Premiums of 200 are payable annually in advance throughout the 5-year term or until earlier death. Let L denote the present value of the insurer's loss on one of these policies, at policy outset, ignoring expenses. (i) Write down an expression for L. [2] (ii) Assuming AM92 Ultimate mortality and 57% pa interest, calculate the expected value and standard deviation of L. [9] [Total 11]