Description
Return one survival-weighted discounted income contribution.
Demographic economic terms combine population, monetary flows, taxes and discount conventions. A local cohort contribution or supplied income comparison is not a complete fiscal projection, benefit entitlement or individual financial forecast.
Return one survival-weighted discounted income contribution.
When to use this tool
Use Survival Weighted Lifetime Income Term when checking one declared cohort financial or fiscal contribution.
How to use the tool and how it works
- Enter futureIncome, survivalProbability, discountRate, years. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read presentExpectedIncome. Use the output convention below.
Return one survival-weighted discounted income contribution. Require survivalProbability in [0,1], discountRate > -1 and years >= 0; presentExpectedIncome = futureIncome*survival/(1+rate)^years.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| futureIncome | Future Income | Required. Finite number. |
| survivalProbability | Survival Probability | Required. Finite number; minimum 0; maximum 1. |
| discountRate | Supplied annual fractional rate greater than -1; years matches the compounding basis. | Required. Finite number; strictly above -1. |
| years | Years | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| presentExpectedIncome | Present Expected Income | Required. Finite number. |
{
"input": {
"futureIncome": 1000,
"survivalProbability": 0.8,
"discountRate": 0,
"years": 10
},
"output": {
"presentExpectedIncome": 800
}
}Limitations and assumptions
- Rate is effective annual fraction; survival and income are supplied, not individualized forecasts.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete population accounts, applicable policy and justified economic assumptions before making financial or public-policy decisions.
References
Similar or alternative tools
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