PDA

View Full Version : EPV ofa life insurance benefit of one unit of money if the interest rate were to = 0



camel61
February 1st 2016, 07:55 AM
If the interest rate were to equal 0 then the EPV of an n year life insurance benefit of one unit of money would equal one unit of money minus one unit of money*n_p_x which reduces to just one unit of money in the whole life case.