Woolhouse is one of the various methods that can be used to calculate the present value of an annuity. Unique features in Woolhouse method is its accuracy in calculating annuity value using Euler-Maclaurin approach. In addition, this method is also very depends on the value of force of mortality and force of interest. Expected Present Value of its annuity obtained from Woolhouse method are compared with its actuarial value. From the simulations carried out for all ages, genders and variation in the number of annual payments, Woolhouses Expected Present Value smaller than its actuarial price because the influence of Euler Maclaurin calculation to the first derivative.
Term annuity, Woolhouse method, Force of interest, Force of mortality Mathematics Subject Classification: 62P05