Actuarial present value of gross premiums

Computes the actuarial present value of premiums weighted by contract persistency at the start of each policy year.

Usage

APV_gross_premiums(G, r, p_tau)

Arguments

G

Nonnegative gross premium vector.

r

Annual effective risk discount rate. May be scalar or vector; values must be greater than -1.

p_tau

One-year in-force probabilities. For n > 1, this may have length n - 1 or n; the final value is ignored when length n. For one premium, use numeric(0) or one value.

Value

A numeric vector with one value for each rate in r.

Examples

APV_gross_premiums(
  G = rep(95, 3),
  r = 0.10,
  p_tau = c(0.99858, 0.99847, 0.99834)
)
#> [1] 259.522