If the account value at the end of the 52nd month is 50 000


A universal life policy has a stated death benefit of 100 000, monthly premiums of 5000, monthly expenses of 100, and a further monthly expense charge of 4% of each premium. The annual credited interest rate is 8%, and the monthly cost of insurance rate in the 5th year of the policy is 30 per thousand. If the account value at the end of the 52nd month is 50 000, find the account value at the end of the 53rd month, assuming that the policy is (a) type B and (b) type A.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: If the account value at the end of the 52nd month is 50 000
Reference No:- TGS01348797

Expected delivery within 24 Hours