Oak Mountain Software
AnnuityValue
Example:
Deferred Life Annuity
An individual, currently age 55, wishes to receive $500 a quarter, starting at age 65, for the remainder of their life.
How many dollars are needed today (present value) to pay for
this benefit? Assume 5.0% and GAR 1994
mortality.
Individual Age
Display
|
|
Primary Assumptions |
||||
|
Table: |
58 |
Description: |
1994 GAR UNISEX MORTALITY
|
Deferred Age: |
65 / 0 |
|
Interest: |
5.00% |
Setback(-)/Setforward(+): |
0 |
qx Factor: |
1 |
|
Pay Freq: |
Quarterly |
Years Certain: |
0 |
Annuity Certain: |
0.000000 |
|
Primary Age
Values - Age: 55 and 0 months |
|
|
Annuity Factor |
Description |
|
14.657393 |
Immediate Life with 0 Year Certain |
|
6.859299 |
Deferred Life to Age 65 and 0 months with 0 Year
Certain |
|
0.467975 |
Actuarial Equivalent to Age 65 and 0 months with 0
Year Certain |
|
27.468060 |
Curtate Expectation of Life |
Answer:
|
Period Payment |
$500.00 |
|
Frequency of Payment |
4 |
|
Annuity Factor |
6.859299 |
|
Product |
$13,718.60 |