The formula that's being used here is: {reserve held at start of year} + {interest earned on the reserve} - {reserve held at end of year per survivor} x {probability of surviving to end of year} Always add this formula to the cashflows in order to get the in-force profit flows (profit vector). Eg, for year 1: = 0 + 0 - P x (1 - q60) = - Px (1 - 0.008022) = -Px0.99198 (noticing that we are told that the reserve for each policy in force is just equal to P at all durations). For year 2: = P x (1.07) - Px(1-0.009009) = P x 0.0079009 Etc. Robert
