Oak Mountain Software
AnnuityValue
Example:
Actuarial Equivalent Annuity
An individual, currently age 60, is due to receive $1,000 a
month, starting at age 65, payable as a 10 Year Certain and Life annuity.
What is the actuarial equivalent monthly amount payable now
as a 10 Year Certain and Life annuity?
Assume 5.5% and GAM 83 Unisex mortality.
Individual Age
Display
|
|
Primary Assumptions |
||||
|
Table: |
40 |
Description: |
GATT GAM-83 50/50 UNISEX MORTALITY |
Deferred Age: |
65 / 0 |
|
Interest: |
5.50% |
Setback(-)/Setforward(+): |
0 |
qx Factor: |
1 |
|
Pay Freq: |
Monthly |
Years Certain: |
10 |
Annuity Certain: |
7.760348 |
|
Primary Age
Values - Age: 60 and 0 months |
|
|
Annuity Factor |
Description |
|
12.757571 |
Immediate Life with 10 Year Certain |
|
8.515247 |
Deferred Life to Age 65 and 0 months with 10 Year
Certain |
|
0.667466 |
Actuarial Equivalent to Age 65 and 0 months with 10
Year Certain |
|
22.344993 |
Curtate Expectation of Life |
Answer:
|
Period Payment |
$1,000.00 |
|
Frequency of Payment |
N/A |
|
Annuity Factor |
.667466 |
|
Product |
$667.47 |