Alphabet City Practice Prob # 1
just want to let you know that step 3a gross APV = 4932 + 6% * 4867 = 5224 instead of 5662
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just want to let you know that step 3a gross APV = 4932 + 6% * 4867 = 5224 instead of 5662
Comments
I think I fixed this a few weeks ago but I noticed I hadn't responded to your post. (I think I also regenerated the random problems when I made the correction. The calculation was carrying more decimals than were visible which is the reason for the inconsistency.)
Hi Graham,
I don't understand why the CY 2016 Net UCAE from the balance sheet (6700-1340=5360) is not equal to the values in the runoff table. I would have thought that CY 2016 UCAE and IBNR from AY 2016 (2100 + 2500= 4600) would equal to the value in the balance sheet (5360). What am I missing here?
Thank you!
Hi,
You are right, they definitely should be equal! You can see the following in q16:
https://www.casact.org/sites/default/files/2021-02/admissions_studytools_exam6c_f18-6c.pdf
In the balance sheet (4477-1760) = IBNR from AY 2016 (1517 + 1200). Good catch!
@graham
Sorry, the numbers in these problems were generated randomly and I wasn't careful enough to make sure all the numbers were internally consistent. I've inserted a note in the wiki and provided a link to this discussion.