An insurance company issues a whole life assurance to a man aged 25 exact for a sum assured of 50, 000 payable immediately on death.

1. (a) Calculate to 2 decimal places the expected present value of the policy on the basis of AM92 select and interest rate of 4% per annum.

   [4 marks]

2. (b) Calculate to 2 decimal places, the variance of this policy using the basis in (a).