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Annuities can be structured to provide payouts either monthly or yearly, depending on the terms of the contract. Most common annuities typically offer monthly payments, but some may provide annual payouts. It's essential to review the specific annuity agreement to understand the payment frequency options available.

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3d ago

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How can you convert the present value of an ordinary annuity into the present value of annuity due?

The simplest way is to gross up the ordinary annuity (payments in arrears) by a single period at the discounting rate. For example, if the ordinary annuity has semi-annual payments (half yearly) and the PV is $1000 using a discounting rate of 5% p.a., then the PV of the annuity due would be: PVDue= $1,000 x ( 1 + 5%/2 ) = $1,025


Will the retirement income calculator estimate your monthly income?

Yes, a retirement income calculator can estimate your monthly income. If you would like to estimate your monthly income from your yearly income, you need to divide that figure by twelve.


What method is used to determine taxable portion of each annuity payment?

The taxable portion of each annuity payment is typically determined using the "exclusion ratio." This ratio is calculated by dividing the investment in the annuity (the amount paid in) by the expected total return (the total amount expected to be received from the annuity). The result is the percentage of each payment that is considered a return of the investment and is thus not taxable. The remainder of the payment is taxable as ordinary income.


What does it mean the the next annuity payment will be fully taxable?

If this a payment to you from your annuity then the total amount of the payment being made to you is from the interest you made during the growth of the annuity. Since the interest grew tax-deferred you must pay the taxes owed on that portion when it is removed from the product. It seems that the company is using the LIFO method of distribution which is Last In First Out. This means that any interest added to the product will be paid out first in most cases whereas taxes will be do on that money since you have not already paid taxes on this growth.


Would an annuity value calculator show you the present value of an annuity?

Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.

Related Questions

What is the difference between installment and annuity?

Instalments are payments for your debts which can be paid on monthly, quarterly or yearly basis or way to make payments. Annuity is insurance product which is contract between you and insurance company for your investments.


What is monthly annuity?

The option to get annuity every month is called monthly annuity.


How is it that we make more being paid every week vs semi monthly?

You don't? You will be paid the same over the course of a year. Being paid weekly is your yearly rate / 52. Being paid semi-monthly is your yearly rate / 24. Not sure I understand the question?


Does obama get paid monthly yearly or weekly?

i dont think he gets paid i think he just gets what he needs


How much do landscapers get paid weekly monthly and yearly?

probably around 28000 $10


Is a salary monthly or yearly?

It can be either. You can have a monthly salary or an annual salary. Depending on where you work you may be paid monthly, or every two weeks, or twice a month.


When do bonuses have to be paid?

There is no set time when a bonus has to be paid. Bonuses have been paid on any given day. They have been paid quarterly, yearly, monthly, or weekly.


What The difference between ordinary annuity and annuity due?

ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period


What The differences between ordinary annuity and annuity due?

ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period


What is monthly paid?

Monthly payment means you get paid a small or big amount of money. Weekly payment means you get paid once a week. Daily payment means you get paid everyday. Yearly... i'm not sure about that, ask an adult or someone you know.


Henry Devin bought a new dishwasher for 320. He paid Y down and made Y monthly payments of 34. What actual yearly interest rate did Henry paid?

Henry Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments of $34. What actual yearly interest rate did Henry paid?


Is income Monthly or yearly?

Monthly