DERIVED OF APV OF BENEFIT
Home Up

 

k Year   Pr(die in the kth year)   PV of benefit $1

   wpe33.jpg (970 bytes)                 wpe34.jpg (1549 bytes)                        wpe35.jpg (1317 bytes)

Therefore, for WL

                           wpe36.jpg (1661 bytes)

                               wpe37.jpg (1715 bytes)

For n-YT

                         wpe38.jpg (1962 bytes)

For n-PE

Event                         Prob.         Benefit        PV of Benefit

    wpe61.jpg (1722 bytes)              wpe3A.jpg (966 bytes)           wpe3B.jpg (799 bytes)                wpe3D.jpg (839 bytes)

                        wpe3E.jpg (1183 bytes)

Since n-YE is the combination of the n-YT and n-PE,

                        wpe3F.jpg (1294 bytes)

APV of benefit in terms of life table

Since

        wpe1.jpg (4619 bytes)