Simple annuity calculation

[CA2 student]

Hi

I'm a ST2 student, but I've come across a question that requires some CT1 knowledge and I'm very rusty on this stuff and don't have my old notes to hand Please can someone remind me why the following is true?

a''[x](12) = a"[x] - 11/24

In words:

Annuity paid monthly in advance = Annuity paid annual in advance - 11/24

Thanks

 

[CA2 student]

Hi

I've now sorted this out myself. It's an approximation at the top of page 36 of the formula book. And it's from CT5 not CT1.

 

[bystander]

Hi

I'm a ST2 student, but I've come across a question that requires some CT1 knowledge and I'm very rusty on this stuff and don't have my old notes to hand Please can someone remind me why the following is true?

a''[x](12) = a"[x] - 11/24

In words:

Annuity paid monthly in advance = Annuity paid annual in advance - 11/24

Thanks

Its about the average dates of payment. But why do you need to know? I don't think CA2 would expect you to include it in the documentation as it is deemed standard knowledge.

Enjoy the course

 

[CA2 student]

But why do you need to know? I don't think CA2 would expect you to include it in the documentation as it is deemed standard knowledge.

Enjoy the course

I'm doing ST2, not CA2. That's just my username