Analyze and interpret gains by source.

Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Profit Analysis. 40 min read, ~5,986 words.

Total gain splits into interest, expense, mortality, and withdrawal pieces that sum to the same total no matter the order. Order matters per line. Standard order is interest, expense, mortality, withdrawal. Each step uses actual for prior items and expected for later ones. Interest gain equals (i' − i)(V_t +...