Policy Year

t

1 0.015 0.985 0.985

2 0.017 0.983 0.96826

3 0.019 0.981 0.94986

4 0.021 0.979 0.92991

5 0.024 0.976 0.90759

17-2

Prior Reserve,

Plus Premium Minus Expenses

1 0+17500-100=17400

2 800+17500-100=18200

3 800+17500-100=18200

17.4

Prior Reserve,

Plus Premium Minus Expenses

1 0 + 19279 - 240 = 19039 20181.34 15000

2 2500 +19279 - 240 = 21539 22831.34 170003 4000 + 19279 - 240 =23039 24421.34 19000

qxt1 pxt1 t px

Policy Year t End-of-Year Accumulation at i .05

Expected Death Benefit

17400*1.05=18270

.015*1,000,000 = 15000

18200*1.05 =19110

.017*1,000,000 = 17000

18200*1.05 =19110

.019*1,000,000 = 19000

Policy Year t End-of-Year Accumulation at i .06

Expected Death Benefit

4 5000 + 19279 - 240 = 24039 25481.34 210005 4000 + 19279 - 240 = 23039 24421.34 24000

G = 19278Prior Reserve,

Plus Premium Minus Expenses

1 0 + 19278 - 240 =19038 20180.28 15000

2 2500 +19278 - 240 =21538 22830.28 170003 4000 + 19278 - 240 =23038 24420.28 190004 5000 + 19278 - 240 =24038 25480.28 210005 4000 + 19278 - 240 =23038 24420.28 24000

17.5Prior Reserve,

Plus Premium Minus Expenses

1 0 + 19500 - 240 = 19260 20415.6 150002 2500 +19500 - 240 =21760 23065.6 170003 4000 + 19500 - 240 =23260 24655.6 190004 5000 + 19500 - 240 =24260 25715.6 210005 4000 + 19500 - 240 =23260 24655.6 24000

17.6Prior Reserve,

Plus Premium Minus Expenses

1 0 + 20335 - 240 = 20095 21300.7 150002 2500 +20335 - 240 =22595 23950.7 170003 4000 + 20335 - 240 =24095 25540.7 190004 5000 + 20335 - 240 =25095 26600.7 210005 4000 + 20355 - 240 =24095 25540.7 24000

Prior Reserve,

Plus Premium Minus Expenses

1 2128.2728 2213.403712 3902 2196.1964 2284.044256 4203 2196.1964 2284.044256 4544 2196.1964 2284.044256 491

Policy Year t End-of-Year Accumulation at i .06

Expected Death Benefit

Policy Year t End-of-Year Accumulation at i .06

Expected Death Benefit

Policy Year t End-of-Year Accumulation at i .06

Expected Death Benefit

Policy Year t End-of-Year Accumulation at i .04

Expected Death Benefit

5 3611.1964 3755.644256 5326 5231.1964 5440.444256 5837 6934.1964 7211.564256 6328 8672.1964 9019.084256 6879 10947.1964 11385.084256 747

10 12258.1964 12748.524256 812

1 0.0039 0.0499 0.9462

2 0.0042 0.04989 0.94591

3 0.00454 0.04988 0.94558

4 0.00491 0.04987 0.94522

5 0.00532 0.04986 0.94482

6 0.00583 0.02991 0.96426

7 0.00632 0.0299 0.96378

8 0.00687 0.0299 0.96323

9 0.00747 0.02989 0.96264

10 0.00812 0.02988 0.962

Policy Year t qd 45t-1 qw 45t-1 p 45t-1

2,500.00

4,000.00

5,000.00

4,000.00

0

Expected Year-End Reserve

Year-End

Pi0

.985*800 = 788 18270 - 15000-788 = 2482 pi1

.983*800 =786.4 19110-17000-786.4 =1323.6 pi2

.981*800= 784.8 19110-19000-784 =-674.8 pi3

Expected Year-End Reserve

Year-End

pi0

2462.5 20181.34-17462.5 =2718.84pi1

3932 22831.34-20932= 1899.34 pi24905 24421.34-23905= 516.34 pi3

tVG

Expected Profit(Prt )

Expected Profit(Prt )

3916 25481.34-24916= 565.34 pi40 24421.34-24000= 421.34 pi5

Expected Year-End Reserve

Year-End

pi0

2462.5 20180.28-17462.5 =2717.78pi1

3932 22830.28-20932= 1898.28 pi24905 24420.28-23905= 515.28 pi33916 25480.28-24916= 564.28 pi4

0 24420.28-24000= 420.28 pi5

Expected Year-End Reserve

Year-End

pi02462.5 20415.6-17462.5 =2953.1 pi1

3932 23065.6-20932= 2133.6 pi24905 24655.6-23905= 750.6 pi33916 25715.6-24916= 799.6 pi4

0 24655.6-24000= 655.6 pi5

Expected Year-End Reserve

Year-End

pi02462.5 21300.7-17462.5 =3838.2 pi1

3932 23950.7-20932= 3018.7 pi24905 25540.7-23905= 1635.7 pi33916 26600.7-24916= 1684.7 pi4

0 25540.7-24000= 1540.7 pi5

Expected Year-End Reserve Expected Surrender Cash Value

Year-End

0 0 1823.4037120 0 1864.0442560 0 1830.044256

1415*.94522=1337.486 0 455.558256

Expected Profit(Prt )

Expected Profit(Prt )

Expected Profit(Prt )

Expected Profit(Prt )

3035*.94482=2867.529 5708*.04986=284.6 71.5152564738*.96426=4568.664 7310.40*.02991=218.654 70.1262566476*.96378=6241.439 8912.80*.02990=266.49 71.63525599999938251*.96323=7947.611 10515.2*.02990=314.404 70.06925600000210062*.96264=9686.084 12115.6*.02989=362.135 589.86525600000111908*.96200=11455.496 13720*.02988=409.954 71.0742560000014

0.9462

0.89502

0.84631

0.79995

0.75581

0.7288

0.7024

0.67657

0.6513

0.62655

pτ t 45

-300 -$24.36 6%100

908070

PROFIT SIGNATURE IRR: NPV APV-3000 4% $2,845.39 $3.41

2482 0.985

1306.701 0.96826

-653.3784 0.94986

NPV=Profit Signature $5,003.50

-5000

2718.84

1870.85499.95

536.99391.808

NPV=Profit Signature $4,999.60

-5000

2717.78

1869.81498.92535.98

390.822

NPV: IRR:Profit Signature $5,864.83

-50002953.1

2101.596726.776759.508609.648

NPV=Profit signature $9,119.14 1 APV:

-50000.985

$4.193838.2

2973.420.96826

1583.781600.23

0.949861432.7123

0.92991

0.90759

PROFIT Signature-5000 NPV: APV:

1832.403712 -$80.31 $5.621763.7586750272

0.94621637.92621000512

385.543507635360.89502

57.20862903720.89502

53.002125547360.84631

52.207774572799549.2166454144014

0.79995399.08513625192146.2906629328009

0.75581

0.7288

0.7024

0.67657

0.6513