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:
“It is the dissenter, the theorist, the aspirant, who is quitting this ancient domain to embark on seas of adventure, who engages our interest. Omitting then for the present all notice of the stationary class, we shall find that the movement party divides itself into two classes, the actors, and the students.”
—Ralph Waldo Emerson (1803–1882)