# Questions tagged [actuarial-science]

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### Dollar/time weighted rate of return of Stock Investment

Question: Stock initially trades for \$120 per share. An investor decides to purchase 1300 shares. After 5 years, the portfolio is worth \$245,570.00. At that time, the investor decides to purchase an ...
17 views

### Investment Analysis NPV [closed]

I am working on an Actuarial Science question: Find the NPV of a project that has an initial cost of $49000$, and produces cash flows of $7000$ for 5 years, followed by $3000$ for the following 3 ...
45 views

### Normal default probability vs forward default probability/conditional default

is the diagram correct in calculating foward PD(conditional default) ? Or should the formula be Probability of default = probability of survival x forward PD Which of this is equal to marginal PD(...
38 views

### Risk-neutral pricing the “un”guaranteed benefits of an insurance policy

I'd love to know if the model of Black-Scholes-Merton could be used to anything that replicates the payoff of a call or option, for example: An insurance contract with participation ( meaning that ...
53 views

### Find a relationship between the present value and future value of an annuity [closed]

The following is a previous examination question in Financial Mathematics: If $A, r, n, PV$ and $FV$ represents the ordinary annuity (annuity immediate) amount, rate of interest, number of years, ...
I am trying to solve the equation $\frac{d}{dt}V(t)=r(t)V(t)+\pi-\mu(x+t)(b_d-V(t))$ numerically using the R function 'ode'. This is a Thiele differential equation for a life insurance reserve with ...