variance_drv {AnnuityRIR}

Compute the variance of the present value of an annuity using "discrete random variable" approach.

Description

Compute the variance of the present value of an annuity using "discrete random variable" approach.

Usage

variance_drv(data,years)

Arguments

data

A vector X of interest rates.

years

The number of years of the income. Default is 10 years.

Author(s)

Salvador Cruz Rambaud, Fabrizio Maturo, Ana María Sánchez Pérez

Examples

# example 1
data = c(1.77,1.85,1.85,1.84,1.84,1.83,1.85,1.85,1.88,1.85,1.80,1.84,1.91,1.85,1.84,1.85,
1.86,1.85,1.88,1.86)
data=data/100
variance_drv(data)