In actuarial science, the actuarial present value of a payment or series of payments which are random variables is the expected value of the present value of the payments, or equivalently, the present value of their expected values. This applies to life insurances, including life annuities. The result depends on age through life tables, and on the interest rate. The internal rate of return of a contract is the rate of return for which the actuarial present value of all cash flows is zero.

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  • In actuarial science, the actuarial present value of a payment or series of payments which are random variables is the expected value of the present value of the payments, or equivalently, the present value of their expected values. This applies to life insurances, including life annuities. The result depends on age through life tables, and on the interest rate. The internal rate of return of a contract is the rate of return for which the actuarial present value of all cash flows is zero.
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  • In actuarial science, the actuarial present value of a payment or series of payments which are random variables is the expected value of the present value of the payments, or equivalently, the present value of their expected values. This applies to life insurances, including life annuities. The result depends on age through life tables, and on the interest rate. The internal rate of return of a contract is the rate of return for which the actuarial present value of all cash flows is zero.
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  • Actuarial present value
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