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Is an annuity worth more or less than a lump sum payment received now?
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Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?
It is worth more than a one lump sum.
Differentiate between ordinary annuity and annuity due?
In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
What is the difference between ordinary annuity and annuity due?
In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
If payment terms are payment in 60 days is that legally when payment is sent or when it is received?
When payment is received. But, most lenders offer a grace period for receipt of payments, partially for this reason. Your best bet is to give no less than three days mail time for a payment to be received.
How can the buyer of annuity structured settlement pay less money?
The buyer of annuity structured settlements can pay less money by only buying settlements which are due to pay out over a longer period of time. Buying a settlement paid over 5 years isn't as profitable as the seller won't be willing to give up a sizable portion of their payment as they can still get it on a short term basis.
If you sell a lottery annuity payment worth 100000 early what can you expect to get?
A good starting point is the present value of the annuity, see related link for the formula.You need to know how many years the annuity is good for, and estimate an interest rate. This is generally the interest rate someone could get for the money elsewhere, for example on government bonds. (Since buying your annuity would tie up the money for years, the interest rate for long term papers is the most relevant.)If we assume a 20-year annuity, 5,000/year and 5% interest, the total payout from the annuity is 100,000 and the present value is ~62,000.You would probably need to sell it for less than present value to make it a better alternative than bonds. How much less depends on the buyer. As an example, if the buyer wants 2% extra interest for the trouble, you can plug in 7% in the formula and get a current value of 52,970.See the link for the formula and calculate for your own numbers.
An amount of money to be received in the future is worth less today than the stated amount?
Since we can reasonably expect that the process of inflation will continue, it follows that dollars in some future year will be worth less than the same number of dollars are worth today.
What does Minimum payment in your credit card bills mean What happens if pay less than the Minimum payment?
It's called minimum payment for a reason.. and that reason is that you don't have to pay you're full balance.. but you have to pay the minimum payment. NOTHING LESS
What would happen to the future value of an annuity if interest rates fell in later period's?
Your annuity will decrease in value as your interest earned would decrease, which would just continue to snowball because that would make your principal value less even further down the road, causing your annuity to devalue even more.
What is tenets of principles in an annuity?
"The wishes of those participating" in the annuity, more or less. English » AfrikaansAlbanianArabicArmenianAzerbaijaniBasqueBengaliBelarusianBulgarianCatalanChinese (Simp)Chinese (Trad)CroatianCzechDanishDutchEnglishEsperantoEstonianFilipinoFinnishFrenchGalicianGeorgianGermanGreekGujaratiHaitian CreoleHebrewHindiHungarianIcelandicIndonesianIrishItalianJapaneseKannadaKoreanLaoLatinLatvianLithuanianMacedonianMalayMalteseNorwegianPersianPolishPortugueseRomanianRussianSerbianSlovakSlovenianSpanishSwahiliSwedishTamilTeluguThaiTurkishUkrainianUrduVietnameseWelshYiddish Options : History : Help : Feedback Text-to-speech function is limited to 100 characters
If Child support has taken your state can they take your federal?
Yes. If you are in arrears in child support (if you owe more than your current monthly payment) the IRS can and usually will take/keep your Federal tax return for payment. Instead of getting a refund check in the mail you will receive a statement/receipt of the amount the IRS applied to your child support debt. If you owe more child support than your refund check is worth the IRS will keep all of it. If you owe less than the value of your refund check, the IRS will send you the difference. You will not, however, received confirmation from the Attorney General that they received the payment from the IRS. You will need to obtain a payment history from the Attorney General to confirm the money was applied. You can call Jackson Hewitt or H&R Block if you have further questions.
Can a person receive a welfare check and child support at the same time in the state of Rhode Island?
Yes, if the amount of support actually received is less than the welfare payment level for the obligor's family.
