CT5 Chapter 2

Discussion in 'CT5' started by shdh, Jan 4, 2017.

  1. shdh

    shdh Ton up Member

    Hi,

    In chapter 2, topic 4 (temporary annuities) and sub topic 4.1 (present value random variable), why is X=a(n), when Kx is greater or equal to n?

    Thanks for help!
    Shyam
     
    shdh, Jan 4, 2017
    #1
  2. Varsha Agarwal

    Varsha Agarwal Member

    Kx is the lifetime of life aged x
    Temporary annuities is for the term of n.
    So if life dies at Kx ,where Kx <n , present value of annuity X= a(Kx)
    And if life survives beyond Kx, Kx>n , Present value of annuity X=a(n). annuity is paid for only n terms even if life survives beyond Kx.
     
    Varsha Agarwal, Jan 5, 2017
    #2
  3. shdh

    shdh Ton up Member

    Ah yes, I get the point!
    Thanks a lot!

    Regards,
    Shyam
     
    shdh, Jan 5, 2017
    #3

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