CT1 IFoA April 2008 Q6 (i)(b)

Discussion in 'CT1' started by Janboyd, Apr 7, 2016.

  1. Janboyd

    Janboyd Member

    Please may someone explain this cancelling to me?

    500(v + 1.08x2v^2 + 1.08^2x3v^3 +... +1.08^19x20v^20) / 500(v + 1.08v^2 + 1.08^2 v^3 +... 1.08^19 v^20)

    =v(1+2+3...+20) / 20v
     
    Janboyd, Apr 7, 2016
    #1
  2. Anacts

    Anacts Member

    Assume i=8%???
    If so then 1.08 *v = 1 and the rest is fairly trivial for a budding actuary :)
     
    Anacts, Apr 7, 2016
    #2
    Janboyd likes this.

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