A series of articles emphasizing practical
knowledge you can't find in practice guides
and interviews with experts who share
their techniques for effective and efficient
case management
The program first determines the initial payment in 2007. Then the
program starts
an iterative process where the present value of each payment is
calculated. Then
all payments are accumulated for the final result.
The amount of each payment is determined based upon SAWW. The discount
for
interest for that payment when it is due is determined by the discount
of a payment
of $1 per week or $2 per pay period. Then the probability of that
payment is
determined. Then the adjusted payment for SAWW is multiplied by
the interest
discount and the probability to get the value of the particular
payment. The value of
all payments is then accumulated for the final present value.
The iterative process starts at t = 1 for the first payment. The
amount of the first
payment is calculated; then the interest discount factor is calculated;
then the
person’s age at the time of payment is calculated; then the
probability factor is
calculated; then the payment is multiplied by the interest discount
factor and by the
probability factor. The result is the present value of the first
payment.
If the age is less than 100+, t is incremented and the present value
of the second
payment is calculated and added to the first payment. The process
continues until
the age at time of payment is found to be greater than 100. When
the age is greater
than 100 the present value of all the payment is completed and the
program
is done.
