In this file, the cumulative amounts at the end of different years in an investment scheme has been simulated where the interest rate follows Normal distribution with mean 8% and std deviation 3%. In this, Rs. 50000 is being invested every year.
It also simulates number of death in different years in a population of 10000 with probability of death as .002. In this mean and std deviation keep changing every year. You can try multiple simulation runs using the technique shown while simulating the the investment part.
You can further try simulating an Insurance Cum Investment product using life table where the probability of death too will change with year.
Download the file to get the formula too. The file is available here
https://drive.google.com/file/d/0B6PHuk6I5SxbVzBxMGpQNTQwck0/view?usp=sharing
It also simulates number of death in different years in a population of 10000 with probability of death as .002. In this mean and std deviation keep changing every year. You can try multiple simulation runs using the technique shown while simulating the the investment part.
You can further try simulating an Insurance Cum Investment product using life table where the probability of death too will change with year.
Download the file to get the formula too. The file is available here
https://drive.google.com/file/d/0B6PHuk6I5SxbVzBxMGpQNTQwck0/view?usp=sharing
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