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A tax deferred fixed annuity pays a flat interest rate.
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∙ 10y ago
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What is the difference between flat rate and reducible interest?
Reducible interest means that one only pays interest on the balance of money owing at the end of the month. Flat rate means that interest is calculated on the original load. Reducible interest rate is approx. equal to twice the flat interest rate.
What is Contractual interest rate on a bond?
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
What are the benefits of a variable annuity?
A variable annuity is beneficial in an economy such as ours now. That way, when interest rates rise (however many years that will take), your annuity will also be at a higher rate.
What is interest rate rise?
An interest rate rise is when a person is late on a bill such as a credit card or insurance bill and the interest rate the person pays goes up.
In which of the following are individuals guaranteed by an insurance company to earn a minimum interest rate on their investment?
fixed annuity
Will you earn a higher interest rate with a variable annuity than with a fixed annuity?
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
What is the difference between flat rate and reducible interest?
Reducible interest means that one only pays interest on the balance of money owing at the end of the month. Flat rate means that interest is calculated on the original load. Reducible interest rate is approx. equal to twice the flat interest rate.
What is the relationship between the value of an annuity and the level of interest rates?
The answer depends on the type of annuity. If the annuity is a fixed period annuity or an annuity which pays a fixed amount during the lifetime of one or more persons, the value of the annuity will decrease if interest rates rise and will increase if interest rates fall. For example, san an annuity is paying $100 per month for 3 years and the interest rate is 5%. The value of the annuity is $100 x ( (1+5%)^(-1/12) + (1+5%)^(-2/12) + ... + (1+5%)^(-36/12) ) = $3,342.13. If the interest rate rises to 6%, the value of the annuity falls to $100 x ( (1+6%)^(-1/12) + (1+6%)^(-2/12) + ... + (1+6%)^(-36/12) ) = $3,294.90.
What is a series of fixed payments and interest rate in excel?
Annuity
What decreases the Present value of an annuity?
Increasing the interest rate
What is an immediate annuity rate?
An immediate annuity is an annuity that begins making payments to you shortly after you deposit your money. The rate of interest you earn on this depends on age, payment options, and other factors.
What is the interest rate on a ing variable annuity?
The interest rate on an ING variable annuity account as obtained via their official company website is anywhere from the 2.5 percent to 3.5 percent range.
What happens to the present value of an annuity when the interest rate decreases?
it increases
What is Contractual interest rate on a bond?
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
An annuity pays out 20000 per yer in perpetuity if the intereset rate is 5 percent compounded annually find the presenet value of the whole annuity?
400000
What is the salery of a mechanic?
a mechanic's salary is determined by experience and whether or not the employer pays by flat rate or timed rate a mechanic's salary is determined by experience and whether or not the employer pays by flat rate or timed rate
What are the benefits of a variable annuity?
A variable annuity is beneficial in an economy such as ours now. That way, when interest rates rise (however many years that will take), your annuity will also be at a higher rate.
