A 10-year 1,000.000 fully discrete term insurance policy is issued to (70).
Mortality follows the Illustrative Table at 6% interest.
(a) Calculate the gross annual premium based on the equivalence principle
(b) Suppose that the policy is modified so that if the policyholder survives, the insurer refunds, at age 80, one-half of all premiums received, without interest.
Calculate the gross annual premium based on the equivalence principle.