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The term of the assured periodic premium increases to 30 years, along with an appropriate adjustment for claims paid for a premium of $500,000 to
The term of the assured periodic premium increases to 30 years, along with an appropriate adjustment for claims paid for a premium of $500,000 to ensure that the actual reserves in year 30 are zero. Calculate effective reserves in year 27, assuming the interest rate remains at 5% per annum. You can complete this question either manually or by making an appropriate modification to the spreadsheet.
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