I

1. (20 points)Todd, age 40, is considering the purchase of a$100,00 participatingordinary life insurance policy.The annual premium is $2280. Projected dividendsover the first 20 years are $15,624. The cash valueat the end of 20 5 years is $35,260. If thepremiumsare invested at 5 percent interest, they will grow to$79,159 at the end of 20 years. If the dividends areinvested at 5 percent interest, they will accumulate to$24,400 at the end of 20 years. A $1 deposit at thebeginning of each year at 5 percent interest will accumulate to $34.719 at the end of 20 years. a. Based on the traditional net cost method, calculate the cost per $1000 per year. b. Based on the surrender cost index, calculate the cost per $1000 per year. c. Based on the net payment cost index, calculate the cost per $1000 per year answer to a