Summary |
This book is naturally divided into two parts. Chapters 1-5 are concerned solely with the Theory of Interest, and Life Contingencies is introduced in Chapter 6-11.
In Chapter 1 we present the basic theory concerning the study of interest. In Chapter 2 we show how the theory in Chapter 1 can be applied to practical problems. Chapter 3 discusses the extremely important concept of annuities. Chapters 4 and 5 deal with further applications of the material in Chapters 1 through 3, namely amortization, sinking funds and bonds. Chapter 6 begins with a review of the important concepts of probability and expectation, and then illustrates how probability can be combined with the theory of interest. In Chapter 7 we introduce life tables, discussing how they are constructed and how they can be applied. Chapter 8 is concerned with life annuities, that is annuities whose payment are conditional on survival, and Chapter 9 discusses life insurance. These ideas are generalized to multi-life situations in Chapter 10.
Finally, Chapter 11 demonstrates how many of these concepts are applied in the extremely important area of pension plans
|
