Actuarial Outpost Accumulation Function and Discount Rate (Monthly)
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#1
11-11-2018, 12:41 AM
 JohnTravolski Member Non-Actuary Join Date: Aug 2016 Posts: 48
Accumulation Function and Discount Rate (Monthly)

I assumed I need to solve the equation:

but this ended up giving me a negative result, which obviously makes no sense in the context of this problem. What is the correct equation to solve?
#2
11-11-2018, 07:44 AM
 Gandalf Site Supporter Site Supporter SOA Join Date: Nov 2001 Location: Middle Earth Posts: 31,096

Do you know what the answer is supposed to be? The equation looks ok, and I believe has a solution around 0.14.
#3
11-11-2018, 07:58 AM
 The_Polymath Member CAS SOA Join Date: Jun 2016 Posts: 1,600

You did the calculation wrong. You get a positive result.

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 Consistency is the hobgoblin of little minds
#4
11-11-2018, 10:20 AM
 JohnTravolski Member Non-Actuary Join Date: Aug 2016 Posts: 48

Thanks, I forgot to multiply a term at the very end in my calculation.