Description: In computing actuarial measurements, such as the moments of present value functions for insurance and annuities, the stochastic nature of the interest rate is commonly ignored. This paper treats the interest rate as a normal random variable and presents general formulas for the mean and variance of the present value function for insurance and annuities. An example demonstrating these formulas is presented. It is found that taking the force of interest to be fixed at a mean value results in slightly underestimating the actuarial present value along with the variance for both insurance and annuities.