CISC 121 Study Guide - Comprehensive Final Exam Guide - Life Insurance, Variance, Random Variable

• School: Queen's University
• Department: Computing
• Course: CISC 121
• Professor: Wendy L Powley

Document Summary

Section 3. 7 discrete whole life annuity immediate. This type of annuity simply pays a dollar a year starting in one year as long as the holder of the annuity lives. E[y] = ax = e[a k ] = e[ (1 v k)/i ] = (1 (1+i)a x)/i = k = 1 w-x-1 vk( By rearranging, we get 1 = i(ax) + (1+i)a x . Section 3. 8 discrete n-year temporary life annuity immediate k px ) An n-year temporary life annuity immediate is like a life annuity immediate, except that it will make a maximum of n payments. Y is equal to a k if k is less than n and is a n if k is greater than or equal to n. the actuarial present value can then be calculated as. E[y] = ax:n = (1 (1+i) a x:n a x:n )/i = k = 1 n vk(