EX-99.(27)(M) 6 d55332_ex99-27m.txt PVALI PROSPECTUS FILING MAY 2003 Exhibit 99.(27)(m) Prudential Variable Appreciable Life Insurance Prospectus Filing May 2003 Demonstration of how the annual investment returns of the sub-accounts were derived from the hypothetical gross rates of return, how charges against sub-account assets were dedcuted the from annual investment returns of the sub-accounts Hypothetical Gross Annual Investment Return 6.00% less Arithmetic Average of Total Contractual Porfolio Expenses - 0.53% less Guaranteed Mortality and Expense Fee - 0.90% ------ Fund Crediting Rate (Net Annual Investment Rate) = 4.57% Prudential Variable Appreciable Life Insurance Prospectus Filing May 2003 Male Nonsmoker Level Death Benefit CVAT Age: 30 Maximum Charges Face: 75,000 Assume Annual Payment of $1,200 in all years TTR: 0 Hypothetical Annual Return of 6% Gross, 4.57% Net Policy --- Year 5
(0a) (0b) (1) (2) (3) (4) (5) (6) (7) BOP BOP Per Per Montly Total Contract Accum Premium Per Policy Premium Month Cost Monthly Contract Month YEAR Fund Prems Paid Loads Loads Loads Of Ins Interest Fund ----- ---- ---- ----- ---- ----- ----- ----- ------ -------- ---- 1 5 4,265 5,300 1,200 -- 41 8.5 9.50 20.17 5425.96 2 5 5,426 6,521 -- -- -- 8.5 9.51 20.18 5428.09 3 5 5,428 6,542 -- -- -- 8.5 9.51 20.18 5430.22 4 5 5,430 6,564 -- -- -- 8.5 9.52 20.19 5432.35 5 5 5,432 6,585 -- -- -- 8.5 9.52 20.20 5434.49 6 5 5,434 6,607 -- -- -- 8.5 9.52 20.21 5436.64 7 5 5,437 6,628 -- -- -- 8.5 9.53 20.22 5438.79 8 5 5,439 6,650 -- -- -- 8.5 9.53 20.22 5440.94 9 5 5,441 6,672 -- -- -- 8.5 9.54 20.23 5443.09 10 5 5,443 6,694 -- -- -- 8.5 9.54 20.24 5445.25 11 5 5,445 6,716 -- -- -- 8.5 9.55 20.25 5447.41 12 5 5,447 6,738 -- -- -- 8.5 9.55 20.26 5449.58 (8) (9) (10) (11) (12) (13) (14) Total EOP EOP EOP EOP Surrender Cash Basic Corridor Corridor Death Accum Month YEAR Charges Surr Value DB Factor DB Benefits Prems Paid ----- ---- ------- ---------- -- ------ -- -------- ---------- 1 5 629.25 4,797 75,000 0.22979 23,613 75,000 6,521 2 5 629.25 4,799 75,000 0.23044 23,555 75,000 6,542 3 5 629.25 4,801 75,000 0.23110 23,497 75,000 6,564 4 5 629.25 4,803 75,000 0.23175 23,441 75,000 6,585 5 5 629.25 4,805 75,000 0.23241 23,383 75,000 6,607 6 5 629.25 4,807 75,000 0.23307 23,326 75,000 6,628 7 5 629.25 4,810 75,000 0.23372 23,271 75,000 6,650 8 5 629.25 4,812 75,000 0.23438 23,214 75,000 6,672 9 5 629.25 4,814 75,000 0.23504 23,158 75,000 6,694 10 5 629.25 4,816 75,000 0.23569 23,103 75,000 6,716 11 5 629.25 4,818 75,000 0.23635 23,048 75,000 6,738 12 5 629.25 4,820 75,000 0.23700 22,994 75,000 6,760
(0a) BOP Contract Fund - Beginning of Period Contract Fund = Ending Contract Fund from the previous month (0b) BOP Accum Prem - accumulated at 4% effective annual interest rate, with annual premiums paid at the beginning of the contract year (1) Premium paid = $1,200 (2) Per Policy load = $0 per month. (3) Per PremiumLoad = Sales/Admin/Tax = $2 + 3.25% of premium paid (4) Per Month Loads =(1) + (2) = (1) a per $1,000 load - $0.11 per month per 1,000 of insurance amount plus (2) a load of 0.5% of the primary annual premium = 0.5%*508.5 (5) Monthly Cost of Insurance - based on 1980 CSO Age Last Birthday Male Nonsmoker (6) Monthly Interest - interest earned on the account value = (12) * [(1+i) ^ (1/12) -1 ] where i=4.57% is the net crediting interest rate. (7) Total Contract Fund - End of Period contract fund = (0) + (1) - (2) - (3) - (4) - (5) +(6) (8) Surrender Charges = Primary Annual Premium * maximum sales charge + $5.00 per $1000 = $508.5 * 50% + $5.00 * 75 = 629.25 for duration 5 (9) Total Cash Surr Value = Cash Surrender Value corresponding to illustration year 5 = (7) - (8) (10) EOP Basic DB - End Of Period Death Benefit = face amount plus the contract fund or Accumulated Premiums , if applicable (11) Corridor factor - net single premium corridor factor at 4% for Male age 30 Nonsmoker CVAT (12) EOP Corridor DB - End of Period Corridor Death Benefit = (7) / (11) (13) EOP Death Benefit - End of Period Death Benefit corresponding to illustration year 5 = max [ (10) , (12) ] (14) EOP Accum Prems Paid - Premiums Paid accumulated at 4% interest, corresponding to illustration year 5