Qn 2.29 Part 2 Question & Answer Bank

Discussion in 'CT5' started by vidhya36, Oct 6, 2018.

  1. vidhya36

    vidhya36 Very Active Member

    How did the first equation came up?
    We write the Loss Random variable as PV Future Benefits + PV Future Expenses - PV future Premium.
    Why the V is subtracted in the equation? What is the logic behind the equation? Why we have annuity in arrears instead of annuity due?
     
    Last edited: Oct 8, 2018

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