Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kamau, currently aged 45, purchases a whole life a

Kamau, currently aged 45, purchases a whole life assurance policy with a sum assured of...

70.2K

Verified Solution

Question

Accounting

Kamau, currently aged 45, purchases a whole life assurance policy with a sum assured of 10,000 payable immediately on death. The expenses are: Initial expense of 160 plus 75% of the annual premium, Renewal expense of 50(incurred throughout life from year 2 onwards) plus 4% of the annual premium (incurred at the time of payment of each premium from year 2 onwards), Claim expenses of 2.5% of sum assured incurred when the benefit is payable. Mortality follows AM92 Ultimate table and interest is 4%. Calculate the net premium that Kamau needs to pay annually in advance for ten years or until his earlier death.
Select one:
537.69
413.34
561.48
318.72
336.50
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Assume a normal distribution and find the following probabilities. (Round the values of z to 2...

Statistics
Q

For an arbitrary ring R, prove that a) If I is an ideal of R, then...

Advance Math
Q

Which of the following reactions is properly classified as a precipitation, reduction/oxidation, and/or Bronsted-Lowry acid/base reaction? (1)...

Chemistry
Q

(1) Answer both questions below about the EOQ model. (a) In the EOQ model, unit product...

General Management
Q

Perform a SWOT analysis for Xiaomi Corporation. (At least 500 words with your own words)

General Management
Q

When upper half of the lens is covered by an opaque screen 1 Half the...

Physics
Q

The figure shows part of a circuit It is a junction at which four branches...

Physics
Q

A large number of identical elastic balls are moving randomly inside a fixed vertical cylindrical...

Physics
Q

To what depth below the surface of sea should a rubber ball be taken so...

Physics
Q

at the animal shelter where Miguel volunteers on the weekends, there were three Siamese cats,...

Basic Math
Q

The following information is available for a particular product : \table[[Standard output,1000 units],[Standard quantity,5...

Accounting
Q

Common-size financial statements may identify the need for corrective action. Question content area...

Accounting