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 annuity factor used is the discounted present value of payments and does not include the risk premium for the life annuity.

Natural hedging strategies for life insurers: impact of product design and risk measure

The monthly payout of any actuarially fair annuity is simply equal to the account balance divided by a monthly annuity factor. The monthly annuity factor is the premium for an actuarially fair annuity that pays $1 per month for life.

Tontine pensions

In order to calculate its present value we multiply it by the three-year annuity factor at 5 per cent and the one-year discount factor at 5 per cent.

Paper F3 financial strategy: the adjusted present value method of appraising investments is not easy to learn, but any question involving a project that's subject to significant financing issues is likely to require you to use it

Find the single life annuity factor for a fifteen year annuity at a 1.4 percent interest rate--13.4453 (from the Annuity, Income, and Remainder Interests for a Term Certain Table in Appendix C).

Expert analysis using tax facts online

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).

GRATs: the time is now: Grantor Retained Annuity Trusts, or GRATs, are having a moment. Here's why estate tax changes and low rates are making these products so appealing--and what you need to know when considering them for clients

C in Tax Facts on Investments for selected unitrust tables.] Both the single life and term certain tables provide factors for remainder interests that can be converted into an income factor or an annuity factor. A remainder interest is converted into an income factor by subtracting the remainder factor from 1.

Valuation tables

(1) Find the single life annuity factor for a person age 70 at a 5.2% rate of return--9.1808 (from Single Life Annuity Factors Table in Appendix C).

Part XVIII: Charitable gifts

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.

Substantially equal payment exception

AF= annuity factor = [(1 + i).sup.RL] -1/[(1 + i).sup.RL] x i

Standard ground value in the context of the harmonization of property valuation

Taxpayers can use an annuity factor derived from the IRS tables for their life expectancy or the joint life expectancy with their beneficiary.

Early retirement: IRS-approved options for early withdrawals

7520 Rate: 6.0% Fair Market Value: $50,000 Adjusted Basis: $10,000 Annuity Payment: $50,000 x 6.5% = $3,250 Annuity Factor: 8.4988 Annuity Adj.

Chapter 12: charitable gift annuities

The calculation of the value of the taxable gift is as follows: Annuity factor for calculating the remainder factor.

The ABCs of QPRTs: a properly structured trust can freeze the value of a client's residence for estate tax purposes