The tab Nxy as: “Nxy” …define For example: N70,67 = D70,67 + D71,68 + D72,69 + D73,70 …. On the tab, N70,67 is found in cell G61. Again, as with the matrix, the “Nxy” “Dxy_2” columns represent difference between ages of two individuals. The highest age of the two would default as the “x” age. Some further examples: Cell D6 is N15,15 Cell D7 is N16,16 Cell H11 is N20,16 The annual factors to monthly factors: “Nxy(12)” tab….. converts is defined as: The “axy(12)” tab……axy(12) This represents the present value factor where payment is conditional on BOTH individuals surviving. But the object under consideration is to obtain the factor for the condition where EITHER survives. To find the factor for this condition (also called a 100% joint and survivor annuity) we must add each independent annuity factor and then subtract the joint individual’s survival factor: This follows from basic probability that for two independent events A and B Each part of the above expression is broken out for married individuals on the tab. “Calc”
The “Nxy” tab …define Nxy as: For example: N70,67 = D70,67 + D71,68 + D72,69 + D73,70 …. On the “Nxy” tab, N70,67 is found in cell G61. Again, as with the “Dxy_2” matrix, the columns represent difference between ages of two individuals. The highest age of the two would default as the “x” age. Some further examples: Cell D6 is N15,15 Cell D7 is N16,16 Cell H11 is N20,16 The “Nxy(12)” tab….. converts annual factors to monthly factors: The “axy(12)” tab……axy(12) is defined as: This represents the present value factor where payment is conditional on BOTH individuals surviving. But the object under consideration is to obtain the factor for the condition where EITHER survives. To find the factor for this condition (also called a 100% joint and survivor annuity) we must add each individual’s independent annuity factor and then subtract the joint survival factor: This follows from basic probability that for two independent events A and B Each part of the above expression is broken out for married individuals on the “Calc” tab.