september 2011

Discussion in 'CT5' started by Harashima Senju, Sep 9, 2018.

  1. Harashima Senju

    Harashima Senju Ton up Member

    How did they find the bonus value of 20 721 Screenshot 2018-09-09 at 20.52.18.png
     
  2. 0.025((1.05)^5 - 1)/0.05 = 0.13814
    0.13814*150000=20721
     
  3. Harashima Senju

    Harashima Senju Ton up Member

    thanks, so by definition the start of each policy year is the same as time t? say the start of policy year 1 is it the same as time 1 on a timeline?
     
  4. For the rate b1 there is no initial lag rate for the rate b2 there is a lag rate of a year so instead of 6 years it is 5. Because they say "Excluding the simple bonus related to that year".
     
    Harashima Senju likes this.
  5. Harashima Senju

    Harashima Senju Ton up Member

  6. Mohit Gulati

    Mohit Gulati Active Member

    the first simple bonus will be compounded for four years
    second will be compounded for 3 years
    and last will be compounded for zero years

    3750*1.05^4 + 3750*1.05^3 + 3750*1.05^2 + 3750*1.05^1 + 3750*1.05^0 = 20721.11

    this 20711 has two parts = 3750*5 (those five simple bonuses) + 1971.11 (super compound bonus)
     

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