ACTSC231 Study Guide - Midterm Guide: Geometric Progression, Arithmetic Progression, V Speeds

• School: University of Waterloo
• Department: Actuarial Science
• Course: ACTSC231
• Professor: Wenjun Zhu

Document Summary

Midterm 2 review formula sheet n 1(cid:88) i=0: formula for sum: ari = a(1 rn) 1 r a(rn 1) r 1. E. g. if |r| < 1, then limn rn = 0 and. 1 common ratio: formulas for level annuities: 1 vn d i (1 + i)n 1 d (1 + i)n 1 i. Sn(cid:101) = (1 + i)n an(cid:101) an(cid:101) = vn sn(cid:101), An(cid:101) = (1 + i) an(cid:101) an(cid:101) = v an(cid:101), Sn(cid:101) = (1 + i) sn(cid:101) sn(cid:101) = v sn(cid:101), Sn(cid:101) = 1 + sn 1(cid:101): perpetuity. The present value of a perpetuity-due of per year: The present value of a perpetuity-immediate of per year: a (cid:101) : the present value of deferred annuity, with the rst payment at time m + 1 and subsequent payments at annual intervals for n years. An+m+1(cid:101) am+1(cid:101: annuity in geometric progression - immediate: