What is an annuity table?
Besides, how do I know which annuity table to use?
An annuity table typically has the number of payments on the y-axis and the discount rate on the x-axis. Find both of them for your annuity on the table, and then find the cell where they intersect. Multiply the number in that cell by the amount of money you get each period.
Also Know, what is the present value of an annuity? The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate.
Similarly one may ask, how much does a 100000 annuity pay per month?
According to Fidelity, a $100,000 deferred income annuity today that is purchased by someone at age 60 would generate $671.81 a month ($8,061.72 a year) in income for a woman and $696.89 a month ($8,362.68 a year) in income for a man. Payments to women are lower because they have longer lifespans than men.
What is the annuity formula?
An annuity is a series of periodic payments that are received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on an amortized loan. The annuity payment formula shown is for ordinary annuities.