 
Summary: 1/82
Chapter 3. Annuities.
Manual for SOA Exam FM/CAS Exam 2.
Chapter 3. Annuities.
Section 3.2. Level payment annuities.
c 2009. Miguel A. Arcones. All rights reserved.
Extract from:
"Arcones' Manual for the SOA Exam FM/CAS Exam 2,
Financial Mathematics. Fall 2009 Edition",
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
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Chapter 3. Annuities. Section 3.2. Level payment annuities.
An annuity is a sequence of payments made at equal intervals of
time. We have n periods of times
[0, t], [t, 2t], [2t, 3t], . . . [(n  1)t, nt] with the same length. By a
change of units, we will assume that intervals have unit length. So,
the intervals are [0, 1], [1, 2], [2, 3], . . . [n  1, n]. We order the
periods as follows:
Time interval Name
