Assumed interest rate(redirected from Assumed Interest Rates)
Assumed interest rate
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Assumed Interest Rate
In annuities, a component of how monthly payments to the annuitant are determined. It is the minimum interest rate that the annuity may accrue while the annuitant makes payments on it; the annuity may perform better than the assumed interest rate depending on how it is invested, but the assumed interest rate serves as a bottom for how much the annuitant will receive when he/she begins to draw payments.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved