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.
References in periodicals archive ?
t] > 0, the expectation in Equation (1), the annuity factor, can be rewritten as:
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).
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.
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.
In addition to selecting the annuity factor (the present value of $1 per year payable monthly for the life of the participant age X), the long formula specifically involves discounting for mortality and for interest.
If a participant preferred an annuity, his lump sum would be divided by an appropriate annuity factor.
x,t] denotes the updated actuarial present value annuity factor, taking into account expected systematic mortality improvements, where there are long-term expected mortality improvements, [[?
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 account balance is divided by an annuity factor taken from the mortality table and based on a reasonable interest rate.
s] is the deferred annuity factor for a normalized payout profile with [n.