Policy Values 1. [6 marks] Jenny, (40), has purchased a 4-year special endowment and will pay a net annual premium over the life of the contract. If a death occurs in the 1st year or 2nd year, a death benefit of $800 is payable at the end of the year of death. If death occurs in the 3rd or 4th year, a death benefit of $1000 is payable at the end of the year of death. If Jenny survives 4 years, $1200 is payable 4 years after the issuance of the policy. You are told that the effective rate of interest is 6% and 440=441=0.08 and 442=443=0.10. a. Calculate the net annual premium b. Calculate the policy value at the end of year 2 Policy Values 1. [6 marks] Jenny, (40), has purchased a 4-year special endowment and will pay a net annual premium over the life of the contract. If a death occurs in the 1st year or 2nd year, a death benefit of $800 is payable at the end of the year of death. If death occurs in the 3rd or 4th year, a death benefit of $1000 is payable at the end of the year of death. If Jenny survives 4 years, $1200 is payable 4 years after the issuance of the policy. You are told that the effective rate of interest is 6% and 440=441=0.08 and 442=443=0.10. a. Calculate the net annual premium b. Calculate the policy value at the end of year 2