

FlashChat  Actuarial Discussion  Preliminary Exams  CAS/SOA Exams  Cyberchat  Around the World  Suggestions 
Browse Open Actuarial Jobs 
Financial Mathematics Old FM Forum 

Thread Tools  Search this Thread  Display Modes 
#1




Annuity Questions [pt 12]
I get the geometric series approach to this question but I'm wondering if there is a way to solve this problem using the geometric annuity formula. When i=k, the denominator is 0 so it renders the equation unsolvable. This question as well. The way other people solve this problem is also by manipulating the geometric series. But I want to use the formula. But I got the answer wrong so I assume this isn't the geometric perpetuity PV formula. Again. People used the geometric series method. This chapter in the ASM manual doesn't give any explanation, examples, or formulas for cases when i=k, geometric perpetuity, and this time, accumulated value. What is the FV formula for geometric annuities? 
#4




Quote:
Simplify (1+k)^t / (1+i)^t
__________________
Favorite Quote(s): Spoiler: 
#6




When i= k, you can simply sum them to determine present value,.if the first payment is at t=0. If the first payment is at t= 1, you can sum them from t = 1, and then discount the sum from time 1.

#8




Quote:
If the first payment is at time 1, the easiest for me is to multiply the series by (1+k)/(1+k). The PV will then be the calculator PV/(1+k). 
#9




Quote:
"If the first payment is at time 1, the easiest for me is to multiply the series by (1+k)/(1+k). " You mean (1+i)/(1+k)? Edit: When you say accumulate at the interest rate, does that mean multiplying PV by (1+i)^n? Last edited by Futon; 07272017 at 03:14 PM.. 
#10




Quote:
Basically a angle n @ i and k has the same value as a angle n @ i' /(1+k) 
Thread Tools  Search this Thread 
Display Modes  

