Question

What does äx represent in actuarial terms?

a.

Present value of 1 payable every year to a life aged x as long as the life is alive

b.

Present value of 1 payable every year to a life aged x as long as the life is alive before age x+n

c.

Present value of 1 payable every year to a life aged x as long as the life is alive, with the first payment made at the commencement of the contract

d.

Present value of 1 payable every year to a life aged x as long as the life is alive before age x+n, with the first payment made at the commencement of the contract

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Present value of 1 payable every year to a life aged x as long as the life is alive, with the first payment made at the commencement of the contract Explanation:äx represents the present value of 1 payable every year to a life aged x as long as the life is alive, with the first payment made at the commencement of the contract.

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