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1. (20 points)Todd, age 40, is considering the purchase of a$100,00 participatingordinary life insurance policy.The annual premium is $2280. Projected dividendsover the first 20 years are $15,624. The cash valueat the end of 20 5 years is $35,260. If thepremiumsare invested at 5 percent interest, they will grow to$79,159 at the end of 20 years. If the dividends areinvested at 5 percent interest, they will accumulate to$24,400 at the end of 20 years. A $1 deposit at thebeginning of each year at 5 percent interest will accumulate to $34.719 at the end of 20 years. a. Based on the traditional net cost method, calculate the cost per $1000 per year. b. Based on the surrender cost index, calculate the cost per $1000 per year. c. Based on the net payment cost index, calculate the cost per $1000 per year answer to a:

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Amoumh (Aox $2920)|누45600 562H) |수29,976 (수35260 $6284 for 20 years Dividends for so years al premiums CLe Less cash val apar Ro yeard 35 Net cos 264.2) net cost is of coverage Pey year mum 누 구9,159 Fukire value the premiums Net Pemiums 5H.75 35260) 9 H9 r 오 years e») Cash value at-ter 오o yea YS mee Cost per Hgg cost pertou sand per year 5G俎/ID The surtemder cos inder is 56b Pey yea酉Net payment cast indes cahulatea Futive vahe the pre miums Ne Pemims foor 2o years 2 ачте.nlr CCAトーし. lion nh paylicus 72 159 Less Futae vale dividends 54,759 Inlet adusk cost Pe yaa 7 $54,7513471 o157.72 e te OS Per Че@f.

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