4. The following data showing incremental loss payments and incremental closed claims are given. Incremental Loss Payments through Development Year Accident Development Years Year 0 1 2 3 AY 4 2000 4000 3000 2200 2800 AY 5 2600 4240 4080 4680 AY 6 2380 6580 5440 AY 7 3120 7680 AY 8 3800 Incremental Closed Claims through Development Year Development Years Ultimate Accident Claim Year 0 1 2 3 4 Counts AY 4 400 300 150 80 70 1000 AY 5 480 310 210 140 1200 AY 6 500 400 240 1400 AY 7 570 480 1500 AY 8 600 1600 Assuming the annual severity trend is 6.5%, calculate the discounted loss reserves as of Dec. 31, AY8. Use an interest rate of 4% for discounting and assume payments at midyear. 4. The following data showing incremental loss payments and incremental closed claims are given. Incremental Loss Payments through Development Year Accident Development Years Year 0 1 2 3 AY 4 2000 4000 3000 2200 2800 AY 5 2600 4240 4080 4680 AY 6 2380 6580 5440 AY 7 3120 7680 AY 8 3800 Incremental Closed Claims through Development Year Development Years Ultimate Accident Claim Year 0 1 2 3 4 Counts AY 4 400 300 150 80 70 1000 AY 5 480 310 210 140 1200 AY 6 500 400 240 1400 AY 7 570 480 1500 AY 8 600 1600 Assuming the annual severity trend is 6.5%, calculate the discounted loss reserves as of Dec. 31, AY8. Use an interest rate of 4% for discounting and assume payments at midyear