Main Article Content
There are two kinds of annuity, annuity certain and life annuity. Annuity certain does not depend on life probability, for example, mortgage. Life annuity depends on time until death and life probability, for example, pension payment from insurance company. The objective of this paper is to discuss further about life annuity and the relationship with life probability that is influences by time until death and the assumption of interest which is used. Time until death (T) is a random variable, because it is unpredictable. To determine the value of distribution, assumption values on tqx will be used. These values are generated by T simulation which depends on Uniform distribution (0,1) random values. A few cases of determining life annuity using tpx distribution values by T simulation will be discussed.
Kellison, SG. (1991). The theory of interest (2nd ed). New York: Mc Graw Hill.
Jurnal Matematika Sains dan Teknologi is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.