ADAPT WA Exam #3, question #3

I have these exams from when I had an ADAPT subscription last Spring, so I apologize if any part of this question has changed since then.



First part of question asks you to calculate expense premium. It calculates the gross premium as we normally do, then uses this to find the PV of future expenses, then divides by the annuity due at 67 to find the expense premium.



I know if the gross premium is calculated using equivalence principle on the same basis as the reserve, the expense premium is just the excess of gross premium over net premium, in other words:



Gross premium = net premium + expense premium.



In this problem we can't use this relationship because you're multiplying the gross premium calculated by equivalence principle by 1.1 to obtain the gross premium for the problem.



My question: is there any way to use the gross premium from equivalence principle and net premium to get the expense premium we need as the answer? Taking the difference between these two and multiplying by 1.1 does not land us with the same answer. Curious as to if this relationship can be manipulated to get the answer.



Thanks!

ADAPT WA Exam #3, question #3