In actuarial science, the Actuarial Present Value (or APV) is the certainty equivalent (or more typically, the expected value) of the present value of a contingent cashflow stream (i.e. a series of random payments). Actuarial present values are typically calculated for the benefit-payment or series of payments associated with life insurance and life annuities. The probability of a future payment is based on assumptions about the person's future mortality which is typically estimated using a life table.
Read more about Actuarial Present Value: Life Insurance, Life Annuity, Life Insurance As A Function of The Life Annuity
Famous quotes containing the word present:
“One of the things that is most striking about the young generation is that they never talk about their own futures, there are no futures for this generation, not any of them and so naturally they never think of them. It is very striking, they do not live in the present they just live, as well as they can, and they do not plan. It is extraordinary that whole populations have no projects for a future, none at all.”
—Gertrude Stein (1874–1946)