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Annuity payments are calculated based on factors such as the initial investment amount, interest rate, and length of the annuity. The formula typically used is based on the present value of the annuity formula, which takes into account these factors to determine the regular payment amount.

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6mo ago

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Related Questions

What is the difference between an annuity and a perpetuity?

The main difference between an annuity and a perpetuity is that an annuity has a set period of payments, while a perpetuity provides payments indefinitely.


What is a flexible variable annuity?

Annuity is the period of time allocating to make payments. The payments can be made at the begining or at the at of the period of time.


What is the difference between a perpetuity and an annuity?

The main difference between a perpetuity and an annuity is that a perpetuity provides payments indefinitely, while an annuity provides payments for a specific period of time.


Where can one find an annuity payments calculator online?

One can find an annuity payments calculator at a number of places online. For example, DGI Direct, RBC Insurance, Bankrate, and Legal and General all have annuity payments calculators online.


What happens to annunity payments after person dies?

After a person dies, the fate of annuity payments depends on the type of annuity and its terms. If the annuity has a death benefit provision, payments may continue to a designated beneficiary or be paid in a lump sum. In contrast, if it is a straight-life annuity, payments typically cease upon the annuitant's death. It's essential to review the specific terms of the annuity contract to understand the implications for beneficiaries.


What will happen if an annuity company close down?

It depends on the type of annuity and how your payouts are calculated. There are several different methods. You do have the option of naming a beneficiary on your annuity, and with certain types of payout options that beneficially could receive the money in your annuity when you die. Other options just pay out during your lifetime, and the payments stop when you die.


What is an annuity with payments made at the end of each period?

An annuity with payments made at the end of each period is known as an ordinary annuity. In this type of financial arrangement, equal payments are made at the conclusion of each specified time interval, such as monthly or annually. This structure is commonly used in loans, mortgages, and retirement plans, where the timing of the payments affects the present value and future value calculations. The ordinary annuity contrasts with an annuity due, where payments are made at the beginning of each period.


How do a retired mailman get his annuity payments?

In the mail?


Periodic payments for an insurance policy?

annuity


What type of annuity settlement arrangement stops making payments when the annuitant dies?

A "life annuity" settlement arrangement stops making payments when the annuitant dies. This type of annuity provides income for the lifetime of the annuitant, but there are no further payments to beneficiaries after their death. If the annuitant passes away shortly after starting the annuity, the total payments received may be less than the initial investment.


Can you take a loan from an annuity?

Yes, but not directly. An annuity is a stream of payments paid to some entity for some limited period of time (there are lifetime annuities which are known as perpetuities). One has the following two options for unlocking the value of an annuity: * Sell the annuity - receive the present value of all future payments right now in a single lump-sum - you will NOT have to pay it back, however, you will not receive any more annuity payments * Get a loan - offer the payments as security on a personal loan - the bank will ask you to redirect the payments of the annuity to their bank and either (1) directly use future payments to pay the loan payments or (2) keep future payments accumulated in a trust to guarantee that the loan gets fully paid.


What is the difference between ordinary annuities and annuities due?

An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period. *an annuity due of (n) periods is equal to an ordinary annuity of (n-1) periods plus the payment.