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Computes the amount accumulated during a step, less the expected reserve required at the end of the step.

Usage

GT_cont(Vt, Vt1, P, delta_actual, p_actual, benefit = 0, h = 1)

Arguments

Vt

Reserve at time `t`.

Vt1

Reserve at time `t + h`.

P

Premium rate.

delta_actual

Actual force of interest.

p_actual

Actual survival probability over the step.

benefit

Benefit paid at the start of the step.

h

Positive step length.

Value

Numeric vector of gain values.

Details

Reserves, premium rates, benefits, and forces of interest may be negative when such values are meaningful for the application. The step length must be positive, and the survival probability must lie in \([0,1]\).

Examples

GT_cont(
  Vt = 10,
  Vt1 = 11,
  P = 1,
  delta_actual = 0.05,
  p_actual = 0.99
)
#> [1] 0.6739821