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A with-profit whole life insurance policy issued to a life aged exactly 30 has a basic sum insured of $100 000. The insurer assumes compound

A with-profit whole life insurance policy issued to a life aged exactly 30 has a basic sum insured of $100 000. The insurer assumes compound reversionary bonuses at the rate of 3% will vest at the end of each policy year. Using the Standard Ultimate Survival Model, with interest at 5% per year, calculate the EPV of this benefit.

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