Introduction to Actuarial Science (Classic Reprint) - Softcover

Inhaltsangabe

Understand how compound interest drives investment growth and how actuaries measure risk. This introduction centers on the compound-interest side of actuarial science, showing how the rate, frequency, and time shape how investments grow over time. It explains the key ideas with simple formulas and practical examples.

This edition walks a reader through the fundamental questions: how much an investment will be worth after a number of periods, and how changing the compounding frequency changes the earned return. It uses a basic $1.00 principal to illustrate how to apply the ratio of increase and the power of exponents to compute growth.

• How the rate per period and the number of periods determine the final amount


• What the ratio of increase means and how to apply it repeatedly


• How different compounding frequencies affect the effective annual rate


• Practical methods for calculating amounts with tables, logarithms, or repeated multiplication

Ideal for readers beginning a study of actuarial science, finance, or risk measurement, and for anyone new to the math of interest.

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