Annuity factor

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Annuity factor

Present value of $1 paid for each of t periods.

Annuity Factor

The calculation of the present value of a cash flow or other income stream that produces $1 in income over so many periods of time.
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The solutions to these problems employ the same compounding that builds interest in savings accounts or is used to compute annuity factors and count rates.
For a 5-year mortgage payable at 7% annually, the mortgage annuity factor forms a pyramid that looks like this:
In an effort to find a form of avg[a(t)] that resembles individual annuity factors, we show in the Appendix that a definition of avg[a(t)] is possible that leads to an approximation of formula (12).
To fix ideas, let us assume for the moment that new annuity factors become available at some future time t.
The lump sum could be converted into retirement income of 25 percent to 30 percent of final average pay, depending on annuity factors.
These annuity factors are much higher at older ages and effectively remove any appearance of backloading in annuity terms.
2] annuity factors for both males and females by dividing the $100,000 into twelve times the monthly payout.
I also included terms for additional time lags that are meant to capture the possibility that annuity factors are not adjusting instantaneously (i.
Current pooling arrangements include new annuity factors based on the mortality experience as it is realized.
Because this benefit is based on conservative actuarial factors, the level of lifetime income that is guaranteed may be less than the level that would be provided by the annuitization of a lower contract accumulation value at current annuity factors.
The table accompanying "Present Value of an Annuity" provides annuity factors from one to thirty years, for sample rates between 5% and 20%.
1457 is not readily available, the required annuity factor for a term of years or the life of one individual can be derived from Table B or S in Regs.