Title :
Calculations of Special Annuities under Random Rates of Interest
Author :
Liu, Lingchen ; Yang, Xiuping ; Lei, Wanpeng ; Li, Ting
Author_Institution :
Dept. of Sci., Shanxi Univ., Taiyuan, China
Abstract :
We consider the calculation of present value of some annuities over a period of years in which the rate of interest is a random variable under some restrictions. We aim at the expected value and variance of the present value. In this paper, the special pattern of annuity changes whose payments are of the rainbow is studied and beginning value is given. Meanwhile, we find recursive relationships for the variance of the present value and solve these relationships.
Keywords :
economic indicators; interest rate; present value calculation; recursive relationship; special annuities calculation; Business; Economic indicators; Insurance; Random variables; Reactive power; annuities; present value; rainbow; random rates of interest;
Conference_Titel :
Business Intelligence and Financial Engineering (BIFE), 2011 Fourth International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4577-1541-9
DOI :
10.1109/BIFE.2011.32
