Suppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy).Your annual premium is $945.The cash value of the policy is expected to be $4,200 in 15 years.Using time value of money and assuming you could invest your money elsewhere at an annual yield of 8 percent, calculate the net cost of insurance. UseExhibit 1-B.

Exhibit 1-B Future value (compounded sum) of $1 paid in at the end of each period for a given number of time periods (an annuity) 11 13 17 19 11 13 17 19 3.03 5.101 7.214 9.369 11.567 13.809 16.097 18.43 20.811 28.243 a g 3.374 6.353 10.089 14.776 20.655 28.029 37.28 a E 63.44 133.334 767.091 5.204 7.434 9.755 12.169 14.68 17.293 20.012 22.841 32.03 60.402 6.48 10.405 15.416 21.814 29.985 40.417 53.739 70.749 155.62 1013.704 5.309 7.662 10. 159 12.808 15.618 18.599 21.762 25.117 36.459 75.401 6.61 10.73 16.085 23.045 32.089 43.842 59.118 78.969 181.871 1342.025 3122 5.416 7.898 10.583 13.486 16.627 20.024 23.698 27.671 41.646 95.026 3.473 6.742 11.067 16.786 24. 349 34.352 47.58 65.075 88.212 212.793 1779.09 3153 5.526 8. 142 11.027 14.207 17.713 21.579 30.539 47.727 120.8 H E 6.877 11.414 17.519 25.733 36.786 51.66 71.673 98.603 249.214 2360.757 3184 5.637 8.394 11.491 14.972 18.882 23.276 28.213 33.76 54.865 154. 762 3.539 7.014 11.772 18.285 27.2 39.404 56. 11 78.979 110.285 292. 105 3134.522 3215 5.751 8.654 11.978 15.784 20.141 25.129 30.84 37.379 63.249 199.635 3 .572 7.154 12. 142 19.086 28.755 42.219 60.965 87.068 123.414 342.603 4163.213 3246 5.867 8.923 12.488 16.645 21.495 27. 152 33.75 41.446 73.106 259.057 I-I 7.297 12.523 19.923 30.404 45.244 66.261 96.022 138.166 402.042 5529.829 3 .278 5.985 9.2 13.021 17.56 22.953 29.361 36.974 46.018 84.701 337.882 3.64 7.442 12.916 20.799 32.15 48.497 72.035 105.931 154.74 471.981 7343.858 6.105 9.487 13.579 18.531 24.523 31.772 40545 51.159 98.347 442.593 3.813 8.207 15.073 25.802 42.566 68.76 109.687 173.636 273.556 1054.791 30088.655 6.228 9.783 14. 164 19.561 26.212 34.405 44.501 56.939 114.413 581.826 9.043 17.583 32.015 56.405 97.625 167.286 285.014 483.973 2348.803 120392.883