Computes the Chapter 10 total gain:
amount on hand at year-end minus amount required.
Usage
GT_disc(Vt, Vt1, P, i_actual, q_actual, B = 1)
Arguments
- Vt
Reserve at duration t.
- Vt1
Reserve at duration t+1.
- P
Net premium for the year.
- i_actual
Actual annual effective interest rate.
- q_actual
Actual mortality rate for the year.
- B
Benefit amount. Defaults to 1.
Examples
GT_disc(Vt = 0.1, Vt1 = 0.11, P = 0.02, i_actual = 0.05, q_actual = 0.01)
#> [1] 0.0071