An insurance company issues a 25-year with-profit endowment assurance policy to a life aged 40 exact. The sum assured of 75.000 plus declared reversionary bonuses are payable on survival to the end of the term or immediately on death if earlier. The insurance company assumes that future reversionary bonuses will be declared at a rate of 3% of the sum assured. Simple and vesting at the end of each policy year (ie the death benefit does not include any bonus relating to the policy year of death). Premiums are payable in advance throughout the term of the policy or until earlier death. Calculate the monthly premium. Basis: Mortality: Interest: Initial commission: Initial expenses: Renewal commission: Renewal expenses: AM92 Select 6% per annum 115% of the first monthly premium 210 2.5% of each monthly premium payable excluding the first 85 per annum inflating at 1.92308% per annum compound, at the start of the second and subsequent policy years For renewal expenses, the amount quoted is at outset, and the increases due to inflation start immediately. [9] Inflation