Alan, who just had his 58th birthday, has the following probability of death in each year: Age Probability of death 58-59 0.01 59-60 0.012 60+ 0.015 Given an annual interest rate of 5%.

a) Calculate the premium of a two-year endowment policy with a face amount equal to $800,000 for Alan.

b) Calculate how much should Alan pay to purchase a deferred life annuity that pays $100,000 each year starting from his 60th birthday.