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Capital D in AM92

D

Danny

Active Member
What does D_x stand for in AM92?

Also, I notice it is only tabulated for 4% interest. If given 6% interest, and I need to use D_x, is there an alternative way of expressing this that would be tabulated?
 
The D_x tables combine survival and discounting. So whilst lx+1/lx calculates the one-year survival probability for a life aged x exact, D_x+1/D_x = v * lx+1/lx. It extends to multi-year calculations so D_x+n / D_x = v^n * npx.

As you mention they are only available for 4% interest but that is a common interest rate for us to use so these come in handy for calculating values of term assurances and pure endowments. You wouldn't need to use D_x at 6%, you'd just go back to first principles and calculate 1.06^-n * npx.

Joe
 
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