1. For a fully discrete whole life on (50) with a death benefit of 100,000, you are given: 
2. 
   
3. (i) The gross premium paid annually is 1100. 
4. 
   
5. (ii) The reserve at the end of the 9th year is 10,000 
6. 
   
7. (iii) The reserve at the end of the 10th year is 11,000. 
8. 
   
9. (iv) The reserve at the end of the 11th year is 12,000. 
10. 
    
11. (v) Cash values are 85% of the reserves. 
12. 
    
13. (vi) Mortality follows the Standard Ultimate Life Table. 
14. 
    
15. (vii) Withdrawals are 15% in the first year and 4% all years thereafter. 
16. 
    
17. (viii) The interest rate earned is 8% in all years. 
18. 
    
19. (ix). Issue expenses are 50% of the premium. 
20. 
    
21. (x). Maintenance expenses are 7% of premium plus 60 per policy in all years including the first year. 
22. 
    
23. Calculate the profit in the 10th year assuming the policy was in force at the start of the year.