Ref 3.2 page 8 ch6 The formula is as \(\require{enclose}(IA)^1_{x:\enclose{actuarial}{n}} = (IA)_x - V^n \left( l_{x+t}/l_x\right) * [ n*A_{x+n} + (IA)_{x+n}] \) Comparing with the TermAssurance function, i do not understand the extra term added in term bracket i.e. \(n*A_{x+n}\) What is it? and why?
IA pays 1 in year 1 2 in year 2 3 in year 3 If you want to knock off the higher than n terms you need to knock off n +1 in year n +1 n +2 in year n +2 ... Or flat n for life, plus 1, 2 3 etc for life [x+n] all n years in future.
