At the beginning of the year, an insurer issued 100,000 policies expected to experience first year mortality of q. At the end of the year, 80% of the survivors are expected to experience mortality of q in the second year.
You are given:
(i) q = 0.006
(ii) q = 0.007
(iii) q+1 = 0.008
Calculate the expected mortality rate for the remaining 20% of the survivors.
I always set these up wrong and then spend hours trying to figure out why I'm off so any hints on how to begin would be really helpful! Thank you!