Equality between Assurance at 8.16% and 4%

Discussion in 'CT5' started by Hernan Weintraub, Jan 9, 2018.

  1. Hello ,
    In the Formulae and Tables(orange book) on page 96-97 there is a note in the last row
    \[^2A_{x} =A_{x}\] at 8.16%
    How it is connected to the 4% ?
    Thanks
     
    Last edited by a moderator: Jan 9, 2018
  2. Sid Kumar

    Sid Kumar Member

    Don't have the tables in hand at the moment but using i* = (1+i)^2-1 gives 2Ax. If you put i=4%, i* is 8.16%, therefore for Ax calculated using i* of 8.16% = 2Ax :)
     

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