aCont function

Continuous Life Annuities

Calculates the present value of a continuous life annuity.

aCont(x, h, n, i = 0.04, data, prop = 1, assumption = "constant", cap = 1)

Arguments

• x: An integer. The age of the insuree.
• h: An integer. The deferral period.
• n: An integer. Number of years of coverage.
• i: The interest rate. A numeric type value.
• data: A data.frame of the mortality table, with the first column being the age and the second one the probability of death.
• prop: A numeric value. It represents the proportion of the mortality table being used (between 0 and 1).
• assumption: A character string. The assumption used for fractional ages ("UDD" for uniform distribution of deaths and "constant" for constant force of mortality).
• cap: A numeric type value. The value of the payment.

Returns

Returns a numeric value (the actuarial present value).

Examples

aCont(35,7,10,0.04,CSO80MANB,1,"constant",1)
aCont(23,5,12,0.04,CSO80MANB,1,"UDD",1)

References

Chapter 2 of Life Contingencies (1952) by Jordan, chapter 5 of Actuarial Mathematics (1997) by Bowers, Gerber, Hickman, Jones & Nesbitt.