Oak Mountain Software

 

AnnuityValue

 

Example: Life Annuity

 

 

How many dollars are needed today (present value) to pay $100 a month to an individual age 60 for the remainder of their life?  Assume 6.0% and UP-84 mortality.

 

Individual Age Display

 

Primary Assumptions

Table: 

41

Description: 

UP-1984 UNISEX TABLE

Deferred Age: 

65 /  3

Interest: 

6.00%

Setback(-)/Setforward(+): 

0

qx Factor: 

1

Pay Freq: 

Monthly

Years Certain: 

0

Annuity Certain: 

0.000000

 

 

Primary Age Values - Age: 60 and 0 months

Annuity Factor

Description

10.595867

Immediate Life with 0 Year Certain

6.238518

Deferred Life to Age 65 and 3 months with 0 Year Certain

0.588769

Actuarial Equivalent to Age 65 and 3 months with 0 Year Certain

18.376974

Curtate Expectation of Life

 

 

Answer:

 

Period Payment

$100.00

Frequency of Payment

12

Annuity Factor

10.595867

Product

$12,715.04