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Thabo is considering buying a whole life policy for $ 5 0 , 0 0 0 . That type of coverage usually has an annual
Thabo is considering buying a whole life policy for $ That type of coverage usually has an annual premium of
$ The coverage is participating and based on the insurers history with similar policies. The insurer is expecting to
pay $ per year as dividends for the first years. The cash value of each of the twenty years will be $ It is known
that both dividends and cash value have not been adjusted in respect to the time value money. The discount factor for
time value of money is
Determine the annual surrender cost per thousand. marks
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