av {DetLifeInsurance} | R Documentation |
Varying Life Annuities: Arithmetic Progression
Description
Calculates the present value of a varying life annuity according to a arithmetic progression.
Usage
av(
x,
h,
n,
k = 1,
r = 1,
i = 0.04,
data,
prop = 1,
assumption = "none",
variation = "none",
cap = 1
)
Arguments
x |
An integer. The age on the insuree. |
h |
An integer. The deferral period. |
n |
An integer. Number of years of coverage. |
k |
An integer. Number of payments per year. |
r |
The variation rate. A numeric type value. |
i |
The interest rate. A numeric type value. |
data |
A data.frame of the mortality table, with the first column being the age and the second one the probability of death. |
prop |
A numeric value. It represents the proportion of the mortality table being used (between 0 and 1). |
assumption |
A character string. The assumption used for fractional ages ("UDD" for uniform distribution of deaths, "constant" for constant force of mortality and "none" if there is no fractional coverage). |
variation |
A character string. "inter" if the variation it's interannual or "intra" if it's intra-annual. |
cap |
A numeric type value. The annualized value of the first payment. |
Value
Returns a numeric value (actuarial present value).
Note
For an increasing life annuity coverage, 'r' must be 1.
References
Chapter 5 of Actuarial Mathematics for Life Contingent Risks (2009) by Dickson, Hardy and Waters.
Examples
av(33,0,5,1,0.8,0.04,CSO80MANB,1,"none","none",1)
av(26,2,4,1,0.4,0.04,CSO80MANB,1,"none","none",1)
av(26,1,5,4,0.5,0.04,CSO80MANB,1,"constant","inter",1)
av(24,1,3,3,0.7,0.04,CSO80MANB,1,"constant","intra",1)
av(35,4,6,6,0.4,0.04,CSO80MANB,1,"UDD","inter",1)
av(40,3,7,2,0.7,0.04,CSO80MANB,1,"UDD","intra",1)