In the ASET solution to this question, it states that "the only way of calculating this (endowment assurance) is by adding together the EPV of the term assurance and the EPV of the pure endowment". I used a premium conversion formula and calculated the required temporary annuity using table values. This gives 0.69811 vs the 0.69809 in the solutions. Is this an acceptable approach, despite the difference in the fourth DP, or does one really *have* to use the solution in the ASET? Why doesn't it work here if so? Thanks.
Premium conversion is absolutely fine for this question. I think what we're getting at in ASET is that you can't simply look this value up in the Tables, so you'll have to find another way of calculating it.
