Bharti Singla
Senior Member
Hi all
In ch5, section 5 talks about restrospective accumulations. The expected AV of benefits is derived here. I got the formuale derived in sec 5.1 but got stuck in sec 5.2.
As they have already considered the random variable of AV of benefit and did its expectation, then why we need to divide it by npx?
The expectation of AV of benefits is expressed as (1+i)ⁿ A¹x:-n and this is what we need. Then why npx is here?
Could anyone please explain?
Thanks
In ch5, section 5 talks about restrospective accumulations. The expected AV of benefits is derived here. I got the formuale derived in sec 5.1 but got stuck in sec 5.2.
As they have already considered the random variable of AV of benefit and did its expectation, then why we need to divide it by npx?
The expectation of AV of benefits is expressed as (1+i)ⁿ A¹x:-n and this is what we need. Then why npx is here?
Could anyone please explain?
Thanks