• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Reversionary Annuity Type 4

W

wzlee12

Member
Dear all,

Can someone please explain to me the circled part for this annuity? I do not get the logic behind it. In case anyone needs its location in the notes, it is in Chapter 9, page 24.

Hopefully someone can help me ASAP. Thank you very much! :)
 

Attachments

  • 21082866_10209623965267184_3485545897813001377_o.jpg
    21082866_10209623965267184_3485545897813001377_o.jpg
    338.5 KB · Views: 24
wzlee12 said:
Dear all,

Can someone please explain to me the circled part for this annuity? I do not get the logic behind it. In case anyone needs its location in the notes, it is in Chapter 9, page 24.

Hopefully someone can help me ASAP. Thank you very much! :)
Click to expand...

Tricky one! I've scribbled my working attached - see if that helps!
Robert
 

Attachments

  • Revy annuity type 4.pdf
    143 KB · Views: 36
Sir,

The only thing that I do not understand is why the working has beyond time n while the payment to y after x died has a maximum of n years? Appreciate your help here though.

Regards,
Wei Zhe.
 
In the section with the integrals, it looks to me as though Robert has set n = 10. Just imagine the 10 to be n for the general case.

In the first integral set up, t is the variable of integration. It relates to the time at which an annuity payment may be being made to y. The payments to y are made so long as y is alive and x died less than n years ago. Since x can die at any point in the future, a payment to y can be being made at any time in the future (ie there is no upper limit on t, the time at which the payment may be being made), eg if x dies at time 50, the payments to y will be from time 50 to time 50+n (so long as y is alive).
 
Thank you both tutors for the help! I will do my best! :)

WZ.
 
Yes, sorry, I did mean n, I don't know why I used 10 o_O. Apologies for confusing. Good luck.
 
You must log in or register to reply here.
Back
Top