CERTAIN function

Actuarial Excel Addin

The CERTAIN function returns the value at time = 0 of an annuity certain paying $1 per year during Duration year(s) starting at Deferred, discounted with interest and payable:

with or without indexation, and
with or without reduction after a contigent annuitant's death.

* : Required parameter

Parameters

Default

Description

Interest *

Interest rate(s): single rate or vector of rates

Duration *

Period of payments (in years), fraction allowed

Deferred

Deferment of first annuity payment, fraction allowed

Freq

Number of payments per year, must be an integer, e.g.: 1, 12, 24, 26, 52

Due

True

False: first payment further deferred by 1/Freq (in years)

Indexation

0 %

Indexation rate(s): single rate or vector of rates

FirstDurIndex

Period after which indexation starts, by default, starts at Deferred + 1, fraction allowed

Certain reduced

False

True: Guaranteed pension reduced after contingent annuitant's death as per 'Reversion'

Age

Age of contingent annuitant at valuation, fraction allowed

Reversion

Reduced annuity after the contingent annuitant's death, e.g. 0,6 or 60%

LX or LX_aea function: contingent annuitant's mortality