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

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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
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