Question: Please help me solve this question, thank you In a double decrement model with two independent decrements (causes), assume the following distributions for the exit

Please help me solve this question, thank you

Please help me solve this question, thank you In
In a double decrement model with two independent decrements (causes), assume the following distributions for the exit times due to decrements 1 and 2 over one year from age x to age x +1: . Decrement 1: , px =1-tq, (uniform exit), 0 0 to derive an approximate formula for the expected present value EPV, of $1 under the policy payable to a policyholder currently aged x within one year at annual interest rate i in terms of x, qx, and 8 = log(1+ i) . Then calculate an approximate EPV of $10,000 payable to a policyholder of current age 55 within next two years, using qx in part (b) above, and i = 0.04. [5]

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