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spedygiorgio / lifecontingencies

Financial and Actuarial Mathematics for Life Contingencies
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Increasing geometrically axn and axyzn #20

Closed Free-rider closed 6 years ago

Free-rider commented 6 years ago

Hello,

Is there any way to calculate axn and azyzn with geometrically increasing?

Thanks

spedygiorgio commented 6 years ago

Hi, as known from classical financial and actuarial mathematics, a geometrically increasing annuity can be priced using the synthetic interest rate $j=i-g$, being $i$ the discount rate and $g$ the geometric growth rate. I have added this clarification in the vignette. HTH