lifecontingencies-package: Package to perform actuarial mathematics on life contingencies and classical financial mathematics calculations.

Description

The lifecontingencies package has been developed to aid actuaries to perform life contingencies analysis and financial mathematics calculation. Most important life contingencies actuarial function have been implemented.

Arguments

Warning

This package and functions herein are provided as is, without any guarantee regarding the accuracy of calculations. The author disclaims any liability arising by eventual losses due to direct or indirect use of this package.

Details

ll{ Package: lifecontingencies Type: Package Version: 0.9.2 Date: 2012-04-09 License: GPL-2.0 LazyLoad: yes }

References

Actuarial Mathematics (Second Edition), 1997, by Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A. and Nesbitt, C.J. Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

Examples

Run this code

##financial mathematics example

#calculates monthly installment of a loan of 100,000, 
#interest rate 0.05

i=0.05
monthlyInt=(1+i)^(1/12)-1
Capital=100000
#Montly installment

R=1/12*Capital/annuity(i=i, n=10,k=12, type = "immediate")
R
balance=numeric(10*12+1)
capitals=numeric(10*12+1)
interests=numeric(10*12+1)
balance[1]=Capital
interests[1]=0
capitals[1]=0

for(i in (2:121))	{
			balance[i]=balance[i-1]*(1+monthlyInt)-R
			interests[i]=balance[i-1]*monthlyInt
			capitals[i]=R-interests[i]
			}
loanSummary=data.frame(rate=c(0, rep(R,10*12)), 
	balance, interests, capitals)

head(loanSummary)

tail(loanSummary)

##actuarial mathematics example

#APV of an annuity

		data(soaLt)
		soa08Act=with(soaLt, new("actuarialtable",interest=0.06,
		x=x,lx=Ix,name="SOA2008"))
		#evaluate and life-long annuity for an aged 65
		axn(soa08Act, x=65)