# Annuity factor

## 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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i](x, g) be the annuity factor observed in week i for an x-year-old individual with a guarantee period of g years.
The monthly annuity factor is the premium for an actuarially fair annuity that pays \$1 per month for life.
Find the single life annuity factor for a fifteen year annuity at a 1.
The gift reportable for tax purposes is fixed, given the fair market value of the gift and the applicable annuity factor (combining term, Section 7520 rate and retained annuity).
An income factor is converted into an annuity factor by dividing the income factor by the appropriate interest rate for the month.
1) Find the term certain annuity factor for 20 years at a 3.
Under the fixed annuity factor method, the annual payment is determined by dividing the account balance by an annuity factor calculated using the mortality table in Rev.
A property valued at the end of its life cycle would be reduced to the ground value, as the annuity factor would be reduced to zero for remaining life (RL = 0), thus eliminating the first term of the formula.
The decedent's estate contended that the IRC section 7520 annuity factor and, thereby, the interest rate applicable on the valuation date, should not be used to determine the present value of the lottery payments for estate tax purposes.
Case law (19) indicates that client success is most likely where (1) payment is computed by dividing the fair market value of the property by the appropriate annuity factor determined from the government's own tables, (2) the trust is obligated to pay the annuity without regard to the value of the property held in the trust or the income produced by trust assets, and (3) the grantor holds no powers to manage the trust or control the trustee.
To arrive at the annuity factor, the reciprocal of the remainder factor (the term interest factor) is divided by the discount rate.
Reference Tables Table A Retirement Age Annuity Factor 55 13.
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