| Initial |
| Reserve. | Cost. | | Fund. |
------------+----------+-----------+--------+---------+
1st year | $1.5038 | $1.2572 |$2.7610 |$12.9769 |
2d " | 3.0406 | 1.0216 | 4.0622 | 23.6015 |
3d " | 4.6503 | .7852 | 5.4355 | 33.2979 |
4th " | 6.3367 | .5378 | 6.8745 | 41.9538 |
5th " | 8.1039 | .2996 | 8.4035 | 49.4594 |
6th " | 8.4136 | .2566 | 8.6702 | 42.6981 |
7th " | 8.7381 | .2076 | 8.9257 | 35.3890 |
8th " | 9.0781 | .1556 | 9.2337 | 27.5009 |
9th " | 9.4346 | .0988 | 9.5334 | 18.9979 |
10th " | 9.8086 | .0344 | 9.8430 | 9.8430 |
------------+----------+-----------+--------+---------+
As the premium payments extend over only five years, the expense
contributions must all be paid during that time and are most
conveniently made by a uniform addition to the net premium.
The present value of the amounts in column 3 is $60.0819, and the
equivalent annuity for five years is $12.9769. This amount, received
for five consecutive years, will put the company in funds to pay
current expenses and leave a reserve of $42.
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