Exercise 6.7 Determine the annual premium for a 20-year term insurance with sum insured $100 000 payable at the end of the year of death, issued to a select life aged 40 with premiums payable for at most 10 years, with expenses, which are incurred at the beginning of each policy year, as follows: Year 1 Years 2+ % of premium Constant % of premium Constant 0 0 4% 25% 0% 0 Taxes Sales commission Policy maintenance 4% 5% 0% 0 10 5 Assume that mortality follows the Standard Select Life Table and use an interest rate of 5% per year. Exercise 6.7 Determine the annual premium for a 20-year term insurance with sum insured $100 000 payable at the end of the year of death, issued to a select life aged 40 with premiums payable for at most 10 years, with expenses, which are incurred at the beginning of each policy year, as follows: Year 1 Years 2+ % of premium Constant % of premium Constant 0 0 4% 25% 0% 0 Taxes Sales commission Policy maintenance 4% 5% 0% 0 10 5 Assume that mortality follows the Standard Select Life Table and use an interest rate of 5% per year