The Following Information on the Mortality Rate of Loans as Estimated

The following information on the mortality rate of loans as estimated by an FI: [Reference: 10-112]
-What is the cumulative mortality rate of the A-rated and B-rated loans for year 2?

A) 1.0 percent and 2.24 percent.
B) 0.5 percent and 1.24 percent.
C) 1.0 percent and 1.74 percent.
D) 0.5 percent and 0.5 percent.
E) 1.0 percent and 1.0 percent. [Refer to: 10-112]