A cash flow is payable continuously at a rate of p, per annum at time t...

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A cash flow is payable continuously at a rate of p, per annum at time t provided a life who is aged x at time 0 is still alive. I is a random variable T which measures the complete future lifetime in years of a life aged .x. ii) Write down an expression, in terms of I, for the present value at time O of this cash flow using a constant force of interest of 8 per annum. Hence or otherwise, show that the expected present value at time 0 of this cash flow is equal to: exp(s), p.ds A cash flow is payable continuously at a rate of p, per annum at time t provided a life who is aged x at time 0 is still alive. I is a random variable T which measures the complete future lifetime in years of a life aged .x. ii) Write down an expression, in terms of I, for the present value at time O of this cash flow using a constant force of interest of 8 per annum. Hence or otherwise, show that the expected present value at time 0 of this cash flow is equal to: exp(s), p.ds A cash flow is payable continuously at a rate of p, per annum at time t provided a life who is aged x at time 0 is still alive. I is a random variable T which measures the complete future lifetime in years of a life aged .x. ii) Write down an expression, in terms of I, for the present value at time O of this cash flow using a constant force of interest of 8 per annum. Hence or otherwise, show that the expected present value at time 0 of this cash flow is equal to: exp(s), p.ds

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1 The present value of the cash flow at time 0 is PV 0T pert dt pr1 erT Where T is a random ... View the full answer