K
kze
Member
Hi,
I understand that the GPV formula is
PV expected future outgo - PV expected future income
However, it says that the reserves should be negative just before the payment of the first premium.
How is that so when there's no income at time 0? (Referring to the formula above)
I understand that the GPV formula is
PV expected future outgo - PV expected future income
However, it says that the reserves should be negative just before the payment of the first premium.
How is that so when there's no income at time 0? (Referring to the formula above)