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That actually depends on what type of annuity you are purchasing. That being said a ball park average would be around 5%. However, this is just a ball park figure because there are so many types of annuities and each company has their own guidelines.

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11y ago

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What percentage of return annually can be expected from a high yield savings account?

A percentage of return that can be expected from a high yield savings account is 0.10%. Although this is the average, some percentages can get as high as 0.90%.


What is an example of a problem using geometric mean?

The geometric mean, by definition, is the nth root of the product of the n units in a data set. For example, the geometric mean of 5, 7, 2, 1 is (5x7x2x1)1/4 = 2.893 The geometric mean is commonly applied in the finance sector to calculate average rates of return where dividends are reinvested (e.g. compound interest).Let's say you invest an amount of money. In the first year your investment increases 8%, in the second year it returns a further 12% but in the third year it goes down 7%. The "average rate of return" is determined using the geometric mean: Average rate of return = (1.08 x 1.12 x 0.93)1/3 = 1.04 (i.e. average 4% per annum increase over the three years).You can use a slight variation of the formula to calculate average compound interest rate if you know the initial value and final value of your investment:Compound interest = (final value / initial value)1/number of years investedFor example, let's say you invest $1000 and after five years it's worth $1200 (an increase of 20%). The average rate of return is not the arithmetic mean (20%/5=4.0%). The geometric mean must be used as the return is compounded:Compound return = (1200/1000)1/5 = 1.037 (i.e. average of 3.7% per annum compounded annually).


What is the average 30 yr rate of return for S and P 500?

The average annual return for the S&P 500 over a 30-year period is typically around 10-11%, including both price appreciation and dividends. This figure can vary based on the specific time frame analyzed, economic conditions, and market cycles. It's important to note that past performance is not indicative of future results, and individual returns may differ based on investment timing and management.


If a stocks expected return exceeds it required return this suggests that?

dividends are not being declared


What is the nominal annual rate of return?

The nominal annual rate of return is calculated from the effective interest rate. It is typically a slightly lower percentage, and gives investors an idea of what their investment may return.

Related Questions

What type of annuity is the individual credited with an return that is based on changes in an index?

Indexed annuity


In which type of annuity is the individual credited with return that is based on changes in an index?

index annuity


What type of annuity is the individual credited with a return that is based on changes in an index?

Indexed annuity


What type of annuity credits an individual with a return that is based on changes is an index?

This would be called an indexed annuity or an equity indexed annuity both meaning the same thing.


What type of annuity credits an individual with a return that is based on changes in an index?

This would be called an indexed annuity or an equity indexed annuity both meaning the same thing.


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.


Do you get your principal back with an annuity?

No, you do not get your principal back with an annuity. An annuity is a financial product that provides regular payments over a set period of time, but it does not typically return the original principal amount invested.


Is a annuity check considered income?

An annuity check would be a part of your unearned income amount on your federal 1040 income tax return.


How can one purchase an annuity?

You need to decide what type of annuity you want to purchase a fixed annuity are for the conservative investor the rate of return is lower. With a variable annuity gives choices of where to invest and amount of payment. A finical advisory will be very helpful to the decision process.


Is a annuity check considered earned income?

An annuity check would be a part of your unearned income amount on your federal 1040 income tax return.


Which type of annuity credits an individual with a return is based on changes in an index?

indexed! :)


Which type of annuity credits an individual with a return that is based on changes in an index?

indexed! :)