What is the Equivalent Level Annual Dividend?

What is the Equivalent Level Annual Dividend?



a. A level amount per $1,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 5th and 10th years.

b. A level amount per $10,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 10th and 20th years.

c. A level amount per $10,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 5th and 10th years.

d. A level amount per $1,000 of death benefit which if paid at the beginning of each policy year and accrued at 5% interest would be equal to allowing dividends to accumulate at 5% interest to the end of the 10th and 20th years.



Answer: D

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