C
Csimpi
Member
I don't understand the first equation of the solution to this question.
According to Chapter 1, Section 8.4, the endowment assurance function is the sum of an n-year Term Assurance with benefit payable immediately on death and a pure endowment with n-year term.
Hence, going back to the solution of the question, I don't understand why the EPV of the endowment assurance function is expressed as the sum of two other EPV functions, the second of which is "A bar" (since this does not correspond to a pure endowment with n-year term). Can someone clarify what is going on here please?
P.S. Due to the notation used in CT5, it is really difficult to post questions clearly. Does anyone know of a package that can be used to insert the actuarial symbols used in the course into questions?
According to Chapter 1, Section 8.4, the endowment assurance function is the sum of an n-year Term Assurance with benefit payable immediately on death and a pure endowment with n-year term.
Hence, going back to the solution of the question, I don't understand why the EPV of the endowment assurance function is expressed as the sum of two other EPV functions, the second of which is "A bar" (since this does not correspond to a pure endowment with n-year term). Can someone clarify what is going on here please?
P.S. Due to the notation used in CT5, it is really difficult to post questions clearly. Does anyone know of a package that can be used to insert the actuarial symbols used in the course into questions?