Hello to anyone who can help me. I am stuck on this question. I don't understand why there is a square root multiplied in front of the calculation? Is this something to do with the fact that A is continuous? Thank you
It uses the claims acceleration approximation that is covered in chapter 1 in section 7.5. And it does not mean A is continuous, it means death benefit is paid immediately on death, this is approximated using the end of year benefit function A multiplied by (1+i)^0.5
