Actuarial Science II - Introduction

6 important questions on Actuarial Science II - Introduction

What is the payment interval?

time between successive payments

What is annual rent?

sum of payments which occur in one year

What is immediate annuity?

Payment ocurs at end of each peeriod
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What is present value / single premium?

Worth of all payments today

Present value of an annuity? (due)

1-v^n/1-v

Why is there a difference between immediate and due annuity?

At an immediate annuity, the payments will be discounted with one more year rent (see powerpoint slide 8&10)

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