You are given the following information about a universal life policy:

Face Amount = $125,000

Death Benefit Option 1 (level)

Current Account Value = $30,000

Cost of Insurance Rate = $0.90/$1,000 of Net Amount at Risk

Monthly Policy Fee = $3.50

Percentage Premium Load = 4%

Annual Interest Rate = 5.5%

The policyowner made a premium payment of $600 during the month.

a) Determine the policys Account Value at the end of the month.

b) How would your answer to the above question change if the death benefit was option 2 (non-level)?