Thabo is considering buying a whole life policy for $$50,000.$ That type of coverage usually has an annual premium of

$$400.$ The coverage is participating and based on the insurer$$s history with similar policies. The insurer is expecting to

pay $$250$ per year as dividends for the first $20$ years. The cash value of each of the twenty years will be $$250.$ 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 $5\%.$

Required

a$.$ Calculate the annual traditional net cost per thousand. $(10$ marks$)$