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Dr Lin, aged 35, takes out a pure endowment policy, which will pay a survival benefit of £60,000 if he survives to age 55. Assume an effective interest rate of 4% per annum and mortality given by the AMC00 Select Table.

(a) What is the cost of the endowment policy?

(b) Dr Lin plans to use the survival benefit to purchase a whole-life annuity paying a monthly amount in advance. How much are the monthly payments