Q6. For a fully discrete whole life insurance with face amount of 1,000 issued to (55), you are given: Mortality rate follows the Illustrative Life Table at an annual effective interest rate of 6%. Percent of premium expenses are 45% in the first year and 10% thereafter. . Both net and gross premiums are reduced by one-third after year 20. Calculate the expense reserve, net premium reserve and total reserve at the end of year 30. Show that the total reserve is equivalent to expense reserve plus net premium reserve. (7 marks) Q6. For a fully discrete whole life insurance with face amount of 1,000 issued to (55), you are given: Mortality rate follows the Illustrative Life Table at an annual effective interest rate of 6%. Percent of premium expenses are 45% in the first year and 10% thereafter. . Both net and gross premiums are reduced by one-third after year 20. Calculate the expense reserve, net premium reserve and total reserve at the end of year 30. Show that the total reserve is equivalent to expense reserve plus net premium reserve. (7 marks)