Actuarial science is a discipline that uses mathematics and statistics to assess risk. The mathematics involved in actuarial science includes probability, statistics, finance, life insurance mathematics, and more.

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Actuarial : “ Amortization - mortage”

What is the monthly payment for a $800,000 mortgage for the first 119 payments that is due in 10 years, has a 25 year amortization, at 5% interest? What is the amount of the 120th payment? I use ...
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Which model to use ? (probability problem)

The following was the problem that I was working on. As a part of the underwriting process for insurance, each prospective policyholder is tested for high blood pressure. Let X represent the ...
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Calculating the interest rate for an annuity (Exam FM)

I have been searching for a way to solve for the interest rate given the monthly payments of a loan. I would like to set up a problem as the following. $X$=monthly payment , $i$=effective ...
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Procedure for Max Function with identical random variables

I am studying for the P/1 actuarial exam, and I keep encountering one type of problem which I can't seem to solve and can't seem to find any generalized explanation for how to do it in my textbooks. ...
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Interest Rate Tree in Matlab

I would like to calibrate a interest rate tree using the optimization tool in matlab. Need some guidance on doing it. The interest rate tree looks like this: How it works: 3.73% = 2.5%*exp(2*0.2) ...