B.2.6 Continuous Annuities – Part 1 Flashcards
1
Q
eqn for continuous annuity with a constant force of interest?
A
a bar angle n = (1 - v^n)/δ
1
Q
What is a continuous annuity and what is it used for?
A
annuity with payments made
continuously
Useful theoretical tool and as an approximation for annuities
payable with great frequency (e.g. daily).
