Computes the actuarial present value of gross premiums:
$$
APV_{GP} = \sum_{t=0}^{n-1} \frac{G_{t+1} \cdot {}_tp_x^{(\tau)}}{(1+r)^t}.
$$
Usage
APV_gross_premiums(G, r, p_tau)
Arguments
- G
Gross premium vector for policy years 1 through \(n\).
- r
Risk discount rate.
- p_tau
One-year in-force probabilities. This may have length
\(n-1\) or \(n\). If length \(n\), the final entry is ignored.
Examples
APV_gross_premiums(G = rep(95, 3),r = 0.10,p_tau = c(0.99858, 0.99847, 0.99834))
#> [1] 259.522