"AST1CAL3 EQUATION VARIABLE |N 7 0N|","03-20-1993","22:10:26"
"ODDS2IT%=RND(100*(1.019404016815819-1.627354234264328D-02*NEXTAGE^1+2.004747781974358D-03*NEXTAGE^2-1.193084931276532D-04*NEXTAGE^3+3.533962198024585D-06*NEXTAGE^4-5.476530680399317D-08*NEXTAGE^5+4.147718252510296D-10*NEXTAGE^6-1.206452519404373D-12*NEXTAGE^7)/(1.019404016815819-1.627354234264328D-02*AGE^1+2.004747781974358D-03*AGE^2-1.193084931276532D-04*AGE^3+3.533962198024585D-06*AGE^4-5.476530680399317D-08*AGE^5+4.147718252510296D-10*AGE^6-1.206452519404373D-12*AGE^7)) PLIV4=ODDS2IT%/100 NUMYEARS=NEXTAGE-AGE EXPECT$=RND(PLIV4*SUM$) FREQCONV=12/CMPERIOD NPERIODS=FREQCONV*NUMYEARS RATE%PER=ANNRATE%/FREQCONV EFFRATE%=RND(100*((1+RATE%PER/100)^FREQCONV-1)) PRESVALU=RND(EXPECT$*(1+RATE%PER/100)^-NPERIODS)"
"PURE ENDOWMENT, STATISTICAL PROBABILITY. A pure endowmwnt      is a promise to pay a fixed sum SUM$ to an individual at some future date       provided he is alive to collect it. PLIV4 is the probability of receiving       that SUM$ at NEXTAGE in years from the present AGE in years. If money earns a   simple annual rate of ANNRATE% with a compounding period CMPERIOD in months,    CMPERIOD= 1 for monthly, =3 for quarterly, =6 for semiannually, =12 for yearly, then PRESVALU is the present value of the expectation EXPECT$ in NUMYEARS from  today. EFFRATE% is the effective or yearly rate percent for money.              Based on 1941 CSO Mortality table.                                                                                                                              *** Answers to problems ***    (c) Copyright PCSCC Inc., 1993                   (a) Set AGE=9, ANNRATE%=7, CMPERIOD=12, NEXTAGE=65, SUM=1,000,000.  The present value is PRESVALU=$13,398.31.                                                                                Type any key to exit.                                                                                                                             ||Mrs. Murphy wants to establish a pure endowment of $1,000,000  for her daughter Melanie now age 9 payable if and when she attains the age of   65. (a) If money is worth 7% effective, find the present value.                          Type comma key to see answers.  Type (F2) to return to helpfile."
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