Exercise 6.8 Consider an annual premium with-profit whole life insurance issued to a select life aged exactly 40. The basic sum insured is $200 000 payable at the end of the month of death, and the premium term is 25 years. Assume a compound reversionary bonus of 1.5% per year, vesting on each policy anniversary, initial expenses of 60% of the annual premium, renewal expenses of 2.5% of all premiums after the first, plus per policy expenses (incurred when a premium is payable) of $5 at the beginning of the first year, increasing by 6% per year compound at the beginning of each subsequent year. Calculate the annual premium. Exercise 6.8 Consider an annual premium with-profit whole life insurance issued to a select life aged exactly 40. The basic sum insured is $200 000 payable at the end of the month of death, and the premium term is 25 years. Assume a compound reversionary bonus of 1.5% per year, vesting on each policy anniversary, initial expenses of 60% of the annual premium, renewal expenses of 2.5% of all premiums after the first, plus per policy expenses (incurred when a premium is payable) of $5 at the beginning of the first year, increasing by 6% per year compound at the beginning of each subsequent year. Calculate the annual premium