Hi all Please see the pics attached below. They have used same notation for premium for both the cases. One case is of benefits payable at the end of death year nd the another one is for benefits payable immediately. Don't we have a separate notation for both the premiums? It may create confusion! Thanks in advance.
In both cases, its Premium which is payable continuously. So \( \bar P \) In 2nd benefits paid immediately, so used \(\bar V \)
Yes, I got the difference between two concepts. But I am just saying that they have used exactly same symbol for premium for both the cases. Px:n with bar is same for both defined in different ways. In the second pic, there is a bar over A (Endoement assurance) but in the first one, there is no bar over A.
I see Bharti's point and there certainly is an inconsistency of use in the Core Reading here. Using the international actuarial notation (pages 127-129 of the Tables) to avoid all confusion you would do this: For page 31 of notes, use P-bar (A-bar x:n) = continuous premiums, immediate death benefit. For page 10, use P-bar (A x:n) = continuous premiums, end-of year of death benefit. I think the correct interpretation of the short-hand P-bar x:n is the same as the first of these, ie EVERYTHING continuous. So I believe it is the page 10 use that is incorrect. However, you rarely, if ever have to do anything with this notation in the exam. The main thing is to make sure you calculate the correct premium allowing for (a) how the benefits are paid and (b) how the premiums are paid! But thanks for pointing it out. Robert