A select life aged 62 exact purchases a 3-year endowment assurance with sum assured 100,000. Premiums of 30,000 are payable annually in advance throughout the term of the policy or until earlier death. The death benefit is payable at the end of the policy year of death. Calculate the expected value of the present value of the profit or loss to the office on the contract, using the following

basis:

Interest : 7.5% per annum

Expenses: Initial 20

Mortality: 8% of AM92