Advanced MS Excel

Ex No : 1 Mortality Table

Aim

To create Mortality Table using MS Excel functions.

Formulas
𝑑𝑥 = 𝑞𝑥 ∗ 𝑙𝑥
𝐷𝑥 = 𝑉 𝑥 ∗ 𝑙𝑥
𝑁𝑥 = 𝐷𝑥 + 𝐷𝑥+1 + 𝐷𝑥+2 + ⋯

𝐶𝑥 = 𝑉 𝑥+1 ∗ 𝑑𝑥
𝑀𝑥 = 𝐶𝑥 + 𝐶𝑥+1 + 𝐶𝑥+2 + ⋯
𝑁𝑥
𝑎̈ 𝑥 =
𝐷𝑥
𝑀𝑥
𝐴𝑥 =
𝐷𝑥
𝑅𝑥 = 𝑀𝑥 + 𝑀𝑥+1 + 𝑀𝑥+2 + ⋯

Functions

Simple Arithmetic functions (+, –, *, /, ^).

Data

From the given data of Age, 𝑙𝑥 , 𝑞𝑥 create Mortality Table.

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Output: Mortality Table

Age (x) 𝒍𝒙 𝒒𝒙 𝒅𝒙 𝑫𝒙 𝑵𝒙 𝑪𝒙

17 10000 0.0006 6 5133.732 119959.8 2.961769

18 9994 0.000594 5.936436 4933.319 114826.1 2.817684

19 9988.064 0.000587 5.862994 4740.759 109892.8 2.675794

20 9982.201 0.000582 5.809641 4555.746 105152 2.549466

21 9976.391 0.000577 5.756378 4377.976 100596.3 2.428935

22 9970.635 0.000572 5.703203 4207.163 96218.32 2.31394

23 9964.931 0.000569 5.670046 4043.035 92011.15 2.212007

24 9959.261 0.000567 5.646901 3885.322 87968.12 2.118247

25 9953.614 0.000566 5.633746 3733.768 84082.8 2.032031

26 9947.981 0.000567 5.640505 3588.13 80349.03 1.956221

27 9942.34 0.00057 5.667134 3448.168 76760.9 1.889861

28 9936.673 0.000574 5.70365 3313.657 73312.73 1.828884

29 9930.696 0.00058 5.759804 3184.292 69999.08 1.775855

30 9925.209 0.00059 5.855873 3060.127 66814.78 1.736034

31 9919.354 0.000602 5.971451 2940.694 63754.66 1.70221

32 9913.382 0.000617 6.116557 2825.888 60813.96 1.676513

33 9907.266 0.000636 6.301021 2715.524 57988.07 1.660647

34 9900.965 0.00066 6.534637 2609.42 55272.55 1.655978

35 9894.43 0.000689 6.817262 2507.402 52663.13 1.661154

36 9887.613 0.000724 7.158632 2409.302 50155.73 1.677245

37 9880.454 0.000765 7.558547 2314.959 47746.43 1.702831

38 9872.895 0.000813 8.026664 2224.219 45431.47 1.738741

39 9864.869 0.00087 8.582436 2136.934 43207.25 1.787627

40 9856.286 0.000937 9.23534 2052.956 41070.31 1.849635

41 9847.051 0.001014 9.98491 1972.147 39017.36 1.922843

42 9837.066 0.001104 10.86012 1894.372 37045.21 2.010949

43 9826.206 0.001208 11.87006 1819.501 35150.84 2.11342

44 9814.336 0.001327 13.02362 1747.407 33331.34 2.229624

45 9801.312 0.001465 14.35892 1677.969 31583.93 2.363678

46 9786.953 0.001622 15.87444 1611.068 29905.96 2.512647

47 9771.079 0.001802 17.60748 1546.591 28294.89 2.679767

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Age (x) 𝒍𝒙 𝒒𝒙 𝒅𝒙 𝑫𝒙 𝑵𝒙 𝑪𝒙

48 9753.471 0.002008 19.58497 1484.427 26748.3 2.866086

49 9733.887 0.002241 21.81364 1424.468 25263.87 3.069454

50 9712.073 0.002508 24.35788 1366.611 23839.41 3.295635

51 9687.715 0.002809 27.21279 1310.754 22472.8 3.540295

52 9660.502 0.003152 30.4499 1256.8 21162.04 3.80907

53 9630.052 0.003539 34.08075 1204.652 19905.24 4.099292

54 9595.972 0.003976 38.15358 1154.22 18700.59 4.412672

55 9557.818 0.004469 42.71389 1105.414 17546.37 4.750093

56 9515.104 0.005025 47.8134 1058.148 16440.96 5.112688

57 9467.291 0.00565 53.49019 1012.338 15382.81 5.499719

58 9413.8 0.006352 59.79646 967.9018 14370.47 5.911646

59 9354.004 0.00714 66.78759 924.7632 13402.57 6.348855

60 9287.216 0.008022 74.50205 882.8465 12477.8 6.809802

61 9212.714 0.009009 82.99734 842.081 11594.96 7.294527

62 9129.717 0.010112 92.3197 802.3988 10752.88 7.801785

63 9037.397 0.011344 102.5202 763.7355 9950.479 8.330592

64 8934.877 0.012716 113.6159 726.0305 9186.743 8.877119

65 8821.261 0.014243 125.6412 689.2291 8460.713 9.439125

66 8695.62 0.01594 138.6082 653.2812 7771.483 10.01279

67 8557.021 0.017824 152.5203 618.1429 7118.202 10.59402

68 8404.492 0.019913 167.3586 583.7735 6500.059 11.17758

69 8237.133 0.022226 183.0785 550.1431 5916.286 11.75719

70 8054.054 0.024783 199.6036 517.2265 5366.143 12.32541

71 7854.451 0.027606 216.83 485.0078 4848.916 12.87416

72 7637.621 0.030718 234.6124 453.4795 4363.908 13.39422

73 7403.008 0.034144 252.7683 422.6437 3910.429 13.87572

74 7150.24 0.037911 271.0727 392.5125 3487.785 14.30821

75 6879.167 0.042046 289.2415 363.1077 3095.273 14.68002

76 6589.926 0.046578 306.9456 334.462 2732.165 14.97939

77 6282.98 0.051538 323.8122 306.6186 2397.703 15.19472

78 5959.168 0.056956 339.4104 279.6309 2091.084 15.31409

79 5619.758 0.062867 353.2973 253.5618 1811.454 15.32757

80 5266.46 0.069303 364.9815 228.4818 1557.892 15.22546

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Age (x) 𝒍𝒙 𝒒𝒙 𝒅𝒙 𝑫𝒙 𝑵𝒙 𝑪𝒙

81 4901.496 0.0763 373.9841 204.4693 1329.41 15.00097

82 4527.496 0.083893 379.8252 181.6035 1124.941 14.64929

83 4147.671 0.092117 382.071 159.9695 943.337 14.16914

84 3765.6 0.101007 380.352 139.6477 783.3676 13.56288

85 3385.248 0.1106 374.4084 120.7137 643.7199 12.83744

86 3010.84 0.120929 364.0979 103.2335 523.0062 12.00377

87 2646.742 0.132028 349.4441 87.25917 419.7727 11.07755

88 2297.298 0.143929 330.6478 72.8255 332.5135 10.07856

89 1966.65 0.15666 308.0954 59.94595 259.688 9.029936

90 1658.555 0.170247 282.364 48.61042 199.7421 7.957478

91 1376.191 0.184714 254.2017 38.78331 151.1317 6.888288

92 1121.989 0.200079 224.4864 30.40335 112.3484 5.849107

93 897.5025 0.216354 194.1783 23.38488 81.94502 4.864819

94 703.3242 0.233548 164.26 17.62064 58.56014 3.956986

95 539.0643 0.251662 135.662 12.98594 40.9395 3.142372

96 403.4023 0.270688 109.1962 9.344107 27.95356 2.432055

97 294.2061 0.290613 85.50012 6.552662 18.60945 1.831047

98 208.706 0.311414 64.99397 4.46959 12.05679 1.338359

99 143.712 0.333058 47.86443 2.959323 7.5872 0.947718

100 95.8476 0.355505 34.0743 1.897786 4.627877 0.648724

101 61.7733 0.378832 23.4017 1.176071 2.730091 0.428397

102 38.3716 0.402464 15.44319 0.70244 1.55402 0.271834

103 22.9284 0.426955 9.789395 0.403589 0.85158 0.165687

104 13.139 0.452257 5.942205 0.22238 0.44799 0.096705

105 7.1968 0.477601 3.437199 0.117122 0.22561 0.053786

106 3.7596 0.503431 1.892699 0.058831 0.108488 0.028478

107 1.8669 0.529487 0.988499 0.02809 0.049657 0.014301

108 0.8784 0.555669 0.4881 0.012708 0.021567 0.00679

109 0.3903 0.58186 0.2271 0.00543 0.008859 0.003038

110 0.1632 0.607843 0.0992 0.002183 0.003429 0.001276

111 0.064 0.634375 0.0406 0.000823 0.001246 0.000502

112 0.0234 0.65812 0.0154 0.000289 0.000423 0.000183

113 0.008 0.6875 0.0055 9.51E-05 0.000134 6.29E-05

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Age (x) 𝒍𝒙 𝒒𝒙 𝒅𝒙 𝑫𝒙 𝑵𝒙 𝑪𝒙

114 0.0025 0.72 0.0018 2.86E-05 3.84E-05 1.98E-05

115 0.0007 0.714286 0.0005 7.7E-06 9.81E-06 5.29E-06

116 0.0002 1 0.0002 2.11E-06 2.11E-06 2.03E-06

117 0 0 0

118 0 0 0

119 0 0 0

120 0 0 0

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Age (x) 𝑴𝒙 𝒂̈ 𝒙 𝑨𝒙 𝑹𝒙

17 519.8888 23.36699 0.101269 27725.82

18 516.927 23.27563 0.104783 27205.93

19 514.1094 23.18042 0.108445 26689

20 511.4336 23.08119 0.112261 26174.89

21 508.8841 22.97781 0.116237 25663.46

22 506.4552 22.87012 0.120379 25154.57

23 504.1412 22.75794 0.124694 24648.12

24 501.9292 22.64114 0.129186 24143.98

25 499.811 22.51956 0.133862 23642.05

26 497.7789 22.39301 0.138729 23142.24

27 495.8227 22.26136 0.143793 22644.46

28 493.9328 22.12442 0.14906 22148.64

29 492.104 21.98262 0.154541 21654.7

30 490.3281 21.83399 0.160231 21162.6

31 488.5921 21.68014 0.166149 20672.27

32 486.8899 21.5203 0.172296 20183.68

33 485.2134 21.35429 0.178681 19696.79

34 483.5527 21.18193 0.18531 19211.58

35 481.8967 21.00307 0.19219 18728.02

36 480.2356 20.81753 0.199326 18246.13

37 478.5583 20.62517 0.206724 17765.89

38 476.8555 20.4258 0.214392 17287.33

39 475.1168 20.21927 0.222336 16810.48

40 473.3291 20.00545 0.23056 16335.36

41 471.4795 19.7842 0.239069 15862.03

42 469.5567 19.5554 0.247869 15390.55

43 467.5457 19.31895 0.256964 14920.99

44 465.4323 19.07475 0.266356 14453.45

45 463.2027 18.82271 0.27605 13988.02

46 460.839 18.56282 0.286046 13524.81

47 458.3263 18.295 0.296346 13063.98

48 455.6466 18.01927 0.306951 12605.65

49 452.7805 17.73566 0.317859 12150

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Age (x) 𝑴𝒙 𝒂̈ 𝒙 𝑨𝒙 𝑹𝒙

50 449.711 17.44418 0.32907 11697.22

51 446.4154 17.14494 0.340579 11247.51

52 442.8751 16.83804 0.352383 10801.1

53 439.066 16.52364 0.364475 10358.22

54 434.9667 16.20193 0.376849 9919.154

55 430.5541 15.87312 0.389496 9484.188

56 425.804 15.53748 0.402405 9053.634

57 420.6913 15.19533 0.415564 8627.83

58 415.1916 14.84703 0.42896 8207.138

59 409.2799 14.49297 0.442578 7791.947

60 402.9311 14.13361 0.4564 7382.667

61 396.1213 13.76941 0.470408 6979.736

62 388.8267 13.40091 0.48458 6583.615

63 381.0249 13.0287 0.498896 6194.788

64 372.6944 12.65338 0.513332 5813.763

65 363.8172 12.27562 0.527861 5441.069

66 354.3781 11.89608 0.542459 5077.251

67 344.3653 11.51546 0.557097 4722.873

68 333.7713 11.13456 0.571748 4378.508

69 322.5937 10.75409 0.586381 4044.737

70 310.8365 10.37484 0.600968 3722.143

71 298.5111 9.997604 0.615477 3411.306

72 285.637 9.623166 0.629878 3112.795

73 272.2427 9.252305 0.644142 2827.158

74 258.367 8.885794 0.658239 2554.915

75 244.0588 8.524394 0.672139 2296.548

76 229.3788 8.168836 0.685814 2052.49

77 214.3994 7.819822 0.699238 1823.111

78 199.2047 7.478016 0.712384 1608.711

79 183.8906 7.144032 0.72523 1409.507

80 168.563 6.818449 0.737752 1225.616

81 153.3376 6.501757 0.749929 1057.053

82 138.3366 6.194487 0.761751 903.7156

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Age (x) 𝑴𝒙 𝒂̈ 𝒙 𝑨𝒙 𝑹𝒙

83 123.6873 5.896981 0.773193 765.379

84 109.5182 5.6096 0.784246 641.6917

85 95.95528 5.332616 0.794899 532.1735

86 83.11784 5.066247 0.805144 436.2183

87 71.11407 4.810643 0.814975 353.1004

88 60.03651 4.565894 0.824389 281.9864

89 49.95796 4.332036 0.833383 221.9498

90 40.92802 4.109039 0.84196 171.9919

91 32.97054 3.896823 0.850122 131.0639

92 26.08225 3.695263 0.857874 98.09332

93 20.23315 3.504188 0.865224 72.01107

94 15.36833 3.323383 0.872178 51.77792

95 11.41134 3.152602 0.878746 36.40959

96 8.268969 2.991571 0.88494 24.99825

97 5.836914 2.839984 0.89077 16.72928

98 4.005867 2.697516 0.896249 10.89237

99 2.667509 2.563829 0.901391 6.886499

100 1.719791 2.438566 0.906209 4.218991

101 1.071067 2.321366 0.910717 2.4992

102 0.64267 2.212316 0.914911 1.428133

103 0.370836 2.110014 0.918845 0.785463

104 0.205149 2.014528 0.922518 0.414626

105 0.108445 1.926284 0.925912 0.209477

106 0.054659 1.844062 0.929074 0.101032

107 0.02618 1.76778 0.932008 0.046374

108 0.011879 1.697067 0.934728 0.020194

109 0.005089 1.631554 0.937248 0.008315

110 0.002051 1.570806 0.939584 0.003226

111 0.000775 1.513776 0.941778 0.001175

112 0.000273 1.461408 0.943792 0.0004

113 9E-05 1.403604 0.946015 0.000126

114 2.71E-05 1.343195 0.948339 3.65E-05

115 7.32E-06 1.274725 0.950972 9.35E-06

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Age (x) 𝑴𝒙 𝒂̈ 𝒙 𝑨𝒙 𝑹𝒙

116 2.03E-06 1 0.961538 2.03E-06

117 #DIV/0! #DIV/0! 0

118 #DIV/0! #DIV/0! 0

119 #DIV/0! #DIV/0! 0

120 #DIV/0! #DIV/0! 0

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 Advanced MS Excel

Term Contract – Premium by

Ex No : 2
Commutation Function & Formula Method

Aim

To find the Premium for the Term Contract – Premium by Commutation Function
& Formula Method

Formula

Commutation Function

𝑀𝑥 − 𝑀𝑥+𝑛
𝐴′𝑥:𝑛 =
𝐷𝑥

𝑁𝑥 − 𝑁𝑥+𝑛
𝑎̈ 𝑥:𝑛 =
𝐷𝑥

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the premium is

Payments 15

SA 500000

Age 30

Interest Rate 4%

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Output

Commutation Method Formula Method

𝑵𝒙 66814.78 𝑨𝒙 0.160231

𝑵𝒙+𝒏 31583.93 𝑨𝒙+𝒏 0.27605

𝑫𝒙 3060.127 𝒂̈ 𝒙 21.83398885

𝑴𝒙 490.3281 𝒂̈ 𝒙+𝒏 18.82271

𝑴𝒙+𝒏 463.2027 𝒏𝑷𝒙 0.987517

𝑨′𝒙:𝒏 0.008864 𝑽𝒏 0.555265

𝒂̈ 𝒙:𝒏 11.51287 𝑨′𝒙:𝒏 0.008864157

𝒂̈ 𝒙:𝒏 11.51287203

Premium 384.9673 Premium 384.9672547

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Term Contract – Premium by

Ex No : 3
Tabular Method

Aim

To find the Premium for the Term Contract – by Tabular Method

Formula

Commutation Function

𝐴′𝑥:𝑛 = 𝑛𝑃𝑥 ∗ 𝑞𝑥 ∗ 𝑉 𝑛+1

𝑎̈ 𝑥:𝑛 = 𝑛𝑃𝑥 ∗ 𝑉 𝑛
𝑙𝑥+𝑛
𝑛𝑃𝑥 =
𝑙𝑥
𝑑𝑥
𝑞𝑥 =
𝑙𝑥

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the premium is

Payments 15

SA 500000

Age 30

Interest Rate 4%

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Output

Tabular Method

Year 𝒏𝑷𝒙 𝒒𝒙 𝑽𝒏 𝑨′𝒙:𝒏 𝒂̈ 𝒙:𝒏

0 1 0.00059 1 1

1 0.99941 0.000602 0.961538 0.000567 0.960971

2 0.998808 0.000617 0.924556 0.000556 0.923455

3 0.998192 0.000636 0.888996 0.000548 0.887389

4 0.997557 0.00066 0.854804 0.000543 0.852716

5 0.996899 0.000689 0.821927 0.000541 0.819378

6 0.996212 0.000724 0.790315 0.000543 0.787321

7 0.995491 0.000765 0.759918 0.000548 0.756491

8 0.994729 0.000813 0.73069 0.000556 0.726839

9 0.993921 0.00087 0.702587 0.000568 0.698315

10 0.993056 0.000937 0.675564 0.000584 0.670873

11 0.992125 0.001014 0.649581 0.000604 0.644466

12 0.991119 0.001104 0.624597 0.000628 0.61905

13 0.990025 0.001208 0.600574 0.000657 0.594583

14 0.988829 0.001327 0.577475 0.000691 0.571024

15 0.987517 0.001465 0.555265 0.000729

Total 0.008864 11.51287

Premium 384.9672

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 Advanced MS Excel

Ex No : 4 Term Contract – Prospective Reserve Method

Aim

To find the Reserve for the Term Contract – by Prospective Reserve Method

Formula

Prospective Reserve Method

𝑡𝑉𝑝𝑟𝑜 = 𝑆𝐴 ∗ 𝐴′𝑥:𝑛 − 𝑃 ∗ 𝑎̈ 𝑥:𝑛

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the Reserve is

Payments 15

SA 500000

Age 30

Interest Rate 4%

Premium 384.9672

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Output

Prospective Reserve Method

Year 𝑨′𝒙:𝒏 𝒂̈ 𝒙:𝒏 𝑺𝑨 ∗ 𝑨′𝒙:𝒏 𝑷 ∗ 𝒂̈ 𝒙:𝒏 Reserve

0 0.008864 11.51287 4432.079 4432.079 0

1 0.008634 10.93984 4316.908 4211.48 105.4281

2 0.008382 10.34366 4191.108 3981.971 209.1371

3 0.008106 9.723407 4052.753 3743.193 309.5595

4 0.007799 9.078117 3899.343 3494.778 404.5652

5 0.007456 8.40679 3727.777 3236.339 491.4381

6 0.00707 7.708373 3534.823 2967.471 567.3524

7 0.006633 6.981763 3316.618 2687.75 628.8678

8 0.006138 6.225796 3069.131 2396.728 672.4029

9 0.005575 5.43925 2787.662 2093.933 693.7289

10 0.004933 4.62084 2466.314 1778.872 687.4421

11 0.004197 3.769205 2098.433 1451.021 647.4123

12 0.003354 2.882897 1677.071 1109.821 567.25

13 0.002387 1.960377 1193.471 754.6809 438.7903

14 0.001276 1 637.9808 384.9673 253.0135

15 0 0 0 0 0

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Ex No : 5 Term Contract – Retrospective Reserve Method

Aim

To find the Reserve for the Term Contract – by Retrospective Reserve Method

Formula

Retrospective Reserve Method

(1 + 𝑖)𝑛
𝑡𝑉𝑟𝑒𝑡𝑟𝑜 = (𝑃 ∗ 𝑎̈ 𝑥:𝑛 − 𝑆𝐴 ∗ 𝐴′𝑥:𝑛 ) ∗ ( )
𝑛𝑃𝑥

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the Reserve is

Payments 15

SA 500000

Age 30

Interest Rate 4%

Premium 384.9672

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Output

Retrospective Reserve Method

Year 𝑨′𝒙:𝒏 𝒂̈ 𝒙:𝒏 𝑺𝑨 ∗ 𝑨′𝒙:𝒏 𝑷 ∗ 𝒂̈ 𝒙:𝒏 𝒏𝑷𝒙 𝑽𝒏 Reserve

0 0 0 0 0 1 1 0

1 0.000567 1 283.6538 384.9673 0.99941 1.04 105.4281

2 0.001124 1.960971 561.7811 754.9097 0.998808 1.0816 209.1371

3 0.001671 2.884426 835.7097 1110.409 0.998192 1.124864 309.5595

4 0.002214 3.771815 1107.046 1452.025 0.997557 1.169859 404.5652

5 0.002755 4.624531 1377.619 1780.293 0.996899 1.216653 491.4381

6 0.003298 5.443909 1649.038 2095.727 0.996212 1.265319 567.3524

7 0.003846 6.23123 1923.087 2398.82 0.995491 1.315932 628.8678

8 0.004403 6.987721 2201.315 2690.044 0.994729 1.368569 672.4029

9 0.004971 7.71456 2485.412 2969.853 0.993921 1.423312 693.7289

10 0.005555 8.412876 2777.495 3238.682 0.993056 1.480244 687.4421

11 0.006159 9.083749 3079.711 3496.946 0.991119 1.539454 648.0695

12 0.006788 9.728214 3393.888 3745.044 0.990025 1.601032 567.8769

13 0.007445 10.34726 3722.461 3983.358 0.990025 1.665074 438.7903

14 0.008136 10.94185 4067.776 4212.253 0.988829 1.731676 253.0135

15 0.008864 11.51287 4432.079 4432.079 0.987517 1.800944 0

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 Advanced MS Excel

Endowment Contract – Premium by

Ex No : 6
Commutation Function & Formula Method

Aim

To find the Premium for the Endowment Contract – by Commutation Function &
Formula Method

Formula

Commutation Function

𝑀𝑥 − 𝑀𝑥+𝑛 + 𝐷𝑥+𝑛
𝐴𝑥:𝑛⌉ =
𝐷𝑥
𝑁𝑥 − 𝑁𝑥+𝑛
𝑎̈ 𝑥:𝑛 =
𝐷𝑥

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the premium is

Payments 15

SA 500000

Age 30

Interest Rate 4%

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 Advanced MS Excel

Output

Commutation Method Formula Method

𝑵𝒙 66814.78 𝑨𝒙 0.160231

𝑵𝒙+𝒏 31583.93 𝑨𝒙+𝒏 0.27605

𝑫𝒙 3060.127 𝒂̈ 𝒙 21.83398885

𝑴𝒙 490.3281 𝒂̈ 𝒙+𝒏 18.82271

𝑴𝒙+𝒏 463.2027 𝒏𝑷𝒙 0.987517

𝑨′𝒙:𝒏 0.008864 𝑽𝒏 0.555265

𝑨𝒙:𝒏 ′ 0.548333 𝑨′𝒙:𝒏 0.008864157

𝑨𝒙:𝒏⌉ 0.557197 𝑨𝒙:𝒏 ′ 0.548333

𝒂̈ 𝒙:𝒏 11.51287 𝑨𝒙:𝒏⌉ 0.557197

𝒂̈ 𝒙:𝒏 11.51287203

Premium 24198.88 Premium 24198.88

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 Advanced MS Excel

Endowment Contract – Premium by

Ex No : 7
Tabular Method

Aim

To find the Premium for the Endowment Contract – by Tabular Method

Formula

Commutation Function

𝑛+1 𝑛
𝐴𝑥:𝑛⌉ = (𝑛𝑃𝑥 ∗ 𝑞𝑥 ∗ 𝑉 ) + (𝑛𝑃𝑥 ∗ 𝑉 )

𝑎̈ 𝑥:𝑛 = 𝑛𝑃𝑥 ∗ 𝑉 𝑛
𝑙𝑥+𝑛
𝑛𝑃𝑥 =
𝑙𝑥
𝑑𝑥
𝑞𝑥 =
𝑙𝑥

Values are taken from the Mortality table [Ex No: 1]

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the premium is

Payments 15

SA 500000

Age 30

Interest Rate 4%

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 Advanced MS Excel

Output

Year 𝒏𝑷𝒙 𝒒𝒙 𝑽𝒏 𝑨′𝒙:𝒏 𝑨𝒙:𝒏 ′ 𝑨𝒙:𝒏⌉ 𝒂̈ 𝒙:𝒏

0 1 0.00059 1 1

1 0.99941 0.000602 0.961538 0.000567 0.960971

2 0.998808 0.000617 0.924556 0.000556 0.923455

3 0.998192 0.000636 0.888996 0.000548 0.887389

4 0.997557 0.00066 0.854804 0.000543 0.852716

5 0.996899 0.000689 0.821927 0.000541 0.819378

6 0.996212 0.000724 0.790315 0.000543 0.787321

7 0.995491 0.000765 0.759918 0.000548 0.756491

8 0.994729 0.000813 0.73069 0.000556 0.726839

9 0.993921 0.00087 0.702587 0.000568 0.698315

10 0.993056 0.000937 0.675564 0.000584 0.670873

11 0.992125 0.001014 0.649581 0.000604 0.644466

12 0.991119 0.001104 0.624597 0.000628 0.61905

13 0.990025 0.001208 0.600574 0.000657 0.594583

14 0.988829 0.001327 0.577475 0.000691 0.571024

15 0.987517 0.001465 0.555265 0.000729 0.548333

Total 0.008864 0.548333 0.557197 11.51287

PREMIUM 24198.88

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 Advanced MS Excel

Ex No : 8 Loan Schedule

Aim

To find the Loan Schedule for the given information using MS Excel.

Formula

Present Value
1
𝑉𝑛 =
(1 + 𝑖)𝑛
1 − 𝑉𝑛
𝑎𝑛⌉ =
𝑖
Loan Schedule
𝐿0 = 𝑋 ∗ 𝑎𝑛

Loan Outstanding after 𝑡 year , 𝐿𝑡 = 𝑋 ∗ 𝑎(𝑛−𝑡)⌉

Interest Element = 𝐿𝑡 ∗ 𝑖

Capital Element = 𝑋 – Interest Element

Where,

𝐿0 – Original Loan Outstanding

𝑋− Annuity Payment

𝐿𝑡 −Loan Outstanding after t years

𝑖 − Rate of Interest

Functions

 VLOOKUP functions.
 Simple Arithmetic functions (+, –, *, /, ^).

Data

The data used to calculate the Loan Schedule is

Loan Amount 15

Interest 500000

No. of years 30

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 Advanced MS Excel

Output

𝑽𝒏 0.613913

𝒂𝒏⌉ 7.721735

EMI (X) 12950.46

Capital Capital
Years Principle Interest EMI
Element (Outstanding)

1 100000 5000 12950.46 7950.457497 92049.5425

2 92049.54 4602.477 12950.46 8347.980371 83701.56213

3 83701.56 4185.078 12950.46 8765.37939 74936.18274

4 74936.18 3746.809 12950.46 9203.648359 65732.53438

5 65732.53 3286.627 12950.46 9663.830777 56068.70361

6 56068.7 2803.435 12950.46 10147.02232 45921.68129

7 45921.68 2296.084 12950.46 10654.37343 35267.30786

8 35267.31 1763.365 12950.46 11187.0921 24080.21575

9 24080.22 1204.011 12950.46 11746.44671 12333.76904

10 12333.77 616.6885 12950.46 12333.76904 1.14596E-10

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