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Alvinpurchasedauniversallifeinsurancepolicyattheageof35.Heisnow43yearsoldandatthe endoftheeighthyearofthepolicy.Thepolicywassoldwithafaceamountis$100,000anddeath benefitoption1andaplannedpremiumof$1,500peryearwhichAlvinhaspaid.Atthebeginningof year8,thecashvalueofthepolicywas$7,800anditgrewby$1,000duringtheyear.Thepolicywas creditedwitha$1,100dividend.IfAlvinpurchasedanannualrenewabletermpolicynow,itwouldcost him$400for$100,000ofcoverage.BasedonYearlyRateofReturn,whatisthereturnonAlvin's policyduringtheeighthyear? Omitpercentsign.

Alvinpurchasedauniversallifeinsurancepolicyattheageof35.Heisnow43yearsoldandatthe endoftheeighthyearofthepolicy.Thepolicywassoldwithafaceamountis$100,000anddeath benefitoption1andaplannedpremiumof$1,500peryearwhichAlvinhaspaid.Atthebeginningof year8,thecashvalueofthepolicywas$7,800anditgrewby$1,000duringtheyear.Thepolicywas creditedwitha$1,100dividend.IfAlvinpurchasedanannualrenewabletermpolicynow,itwouldcost him$400for$100,000ofcoverage.BasedonYearlyRateofReturn,whatisthereturnonAlvin's policyduringtheeighthyear? Omitpercentsign.

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