Oak Mountain Software
AnnuityValue
Example:
Joint Annuity
An individual, age 57, and beneficiary age 55, wish to
receive $2,500 every 6 months as long as both of them are alive to receive it.
How many dollars are needed today (present value) to pay for
this benefit? Assume 5.0% and UP-84
mortality.
Individual Age
Display
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|
Primary Assumptions |
||||
|
Table: |
41 |
Description: |
UP-1984 UNISEX TABLE |
Deferred Age: |
65 / 0 |
|
Interest: |
5.00% |
Setback(-)/Setforward(+): |
0 |
qx Factor: |
1 |
|
Pay Freq: |
Semi-Annually |
Years Certain: |
0 |
Annuity Certain: |
0.000000 |
|
|
|||||
|
|
Secondary Assumptions |
||||
|
Table: |
41 |
Description: |
UP-1984 UNISEX TABLE |
Deferred Age: |
65 / 0 |
|
Interest: |
5.00% |
Setback(-)/Setforward(+): |
0 |
qy Factor: |
1 |
|
Pay Freq: |
Semi-Annually |
Years Certain: |
0 |
Annuity Certain: |
0.000000 |
|
Joint Age Values |
|
|
Annuity Factor |
Description |
|
10.595726 |
Immediate Joint Life with 0 Year Certain |
|
15.023261 |
Immediate 100% Joint & Contingent with 0 Year
Certain |
|
15.023261 |
Immediate 100% Joint & Survivor with 0 Year
Certain |
|
15.620930 |
Joint Curtate Expectation of Life |
Answer:
|
Period Payment |
$2,500.00 |
|
|
Frequency of Payment |
2 |
|
|
Annuity Factor |
10.595726 |
|
|
Product |
$52,978.63 |
|
|
Description |
Annuity of $2,500 payable every 6 months as long as both
the participant and beneficiary are alive.
Payments cease when either one or both of the recipients dies. |
|