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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| Annuity factor for calculating the remainder factor. The annuity factor has been adjusted to reflect the statistical mortality factors for the grantor's age at the beginning and end of the term; however, the IRS lost a key Tax Court case involving the annuity factor. The formula for calculating these accrued rights at the time of entry into the new system is 80 percent of the insured's total earnings in the 12 months prior to June 1979, indexed according to inflation from the last month of such wages up to the date of entry into the new system, multiplied by an annuity factor (10. |
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