Address the following questions.

Mr X (a UK resident who wishes to remain anonymous) has just sold 100,000 used f10 notes and deposited the proceeds in a dollar-denominated Swiss bank account. Describe fully the effect that this will this have on: (i) the UK's balance of payments (ii) Switzerland's balance of payments (iii) the USA's balance of payments. Assume that the following exchange rates apply: fl = 3SwF $1 = 2SwF.Ken and Barbie, aged 60 and 64 respectively, take out a policy under which the benefits are: A lump sum of f50,000 payable at the end of the year of the first death provided this occurs within 10 years. An annuity payable annually in advance with the first payment due to be made 10 years from the date of issue. The annuity will be of $10,000 pa for so long as both Ken and Barbie are still alive or $5,000 while only one of them is alive. Level premiums are payable annually in advance for at most 10 years and will cease on the first death if this occurs earlier. Calculate the amount of the annual premium on the following basis: Interest: 4% pa Mortality: Ken: PMA92C20 Barbie: PFA92C20 Expenses: None [8]