• 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.

Sept 06 ASET Q4

J

Jooser

Member
Hi, quick question regarding the model solution given for this question.

The annuity a(60) payable monthly [i.e. with (12) superscript] is used at the start of the question, but when the values are plugged in from the tables the -11/24 approximation I was expecting for the (12) was not used (although it was in the denominator).

Can anybody please explain why this is the case?

Many thanks,

Jooser
 
I think it's just because you've got a subtraction going on (to calculate the reversionary annuity) and the -11/24 approximation from the first term (single life annuity) cancels with the -(-11/24) approximation from the second (joint life annuity).
 
You must log in or register to reply here.
Back
Top