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Graham, aged 40, purchases a conventional with-profits whole life assurance with sum assured 2,000 plus attaching bonuses, payable at the end of the year of

Graham, aged 40, purchases a conventional with-profits whole life assurance with sum assured £2,000 plus attaching bonuses, payable at the end of the year of death. Assuming allowance for simple bonuses of 3% pa, which are added at the start of each policy year, calculate the expected present value of Graham's policy benefits. Basis: AM92 Ultimate mortality, 4% pa interest.

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