Lesson plan
Actuarial notation
Actuarial notation is a shorthand method to allow actuaries to record mathematical formulas that deal with interest rates and life tables. The core alphabet includes familiar letters such as i for the effective rate of interest, v=(1+i)^{-1} for the discount factor, \delta for the force of interest, l_x and q_x for life table entries, and function letters such as a, \ddot a and A for annuities and insurances. A distinctive feature of the system is a placement convention that uses positions around a main symbol to encode information such as the term, the ages or statuses involved, the timing of payments and the payment frequency. Typical markers include a bar over a symbol for continuous payments, a pair of dots to indicate an annuity-due and superscripts or subscripts to denote terms and ages. An international standard form of this notation was agreed by the actuarial profession in the mid twentieth century and has remained broadly stable in modern teaching and practice.
Article summary
Actuarial notation is a shorthand method to allow actuaries to record mathematical formulas that deal with interest rates and life tables. The core alphabet includes familiar letters such as i for the effective rate of interest, v=(1+i)^{-1} for the discount factor, \delta for the force of interest, l_x and q_x for life table entries, and function letters such as a, \ddot a and A for annuities and insurances. A distinctive feature of the system is a placement convention that uses positions around a main symbol to encode information such as the term, the ages or statuses involved, the timing of payments and the payment frequency. Typical markers include a bar over a symbol for continuous payments, a pair of dots to indicate an annuity-due and superscripts or subscripts to denote terms and ages. An international standard form of this notation was agreed by the actuarial profession in the mid twentieth century and has remained broadly stable in modern teaching and practice.
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.