In chapter 5 at section 5.2 term assurance it says: It is easy to see that F(1) has the following distribution: F(1) = (1+i)^(n-k-1) if Kx= k (k= 0,1,...,n-1). For me it was impossible to understand this formula. Can you help me? Thank you,
Try some values of k. If they die in the first year, what is k? What is F(1)? Does this make sense? If they die in the 2nd year, what is k? What is F(1)? Does this make sense? John
