Calculate the insurance premium

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Problem 1: You intend to purchase an insurance policy on 1 January 2021 which will provide you with a cash return of $5000 annually at the beginning of each year in 10 years time from now for eight years. The premium payments will be made half-yearly over the 10 years with the first payment made on the day of purchase. The insurance company will accumulate cash bonuses on the premiums paid at a rate of 5.25% per annum. Calculate the insurance premium that you will be required to pay to the insurance company every six months.

Reference no: EM132804532

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