Annuity Table
Definition of 'Annuity Table'A method for determining the present value of a structured series of payments. The annuity table provides a factor, based on time and a discount rate, by which an annuity payment can be multiplied to determine its present value. For example, an annuity table could be used to calculate the present value of an annuity that paid $10,000 a year for 15 years if the interest rate is expected to be 3\%. Financial calculators and computer software can also be used for this purpose. |
|
Investopedia explains 'Annuity Table'A lottery winner could use an annuity table to determine whether it made more financial sense to take his lottery winnings as a lump-sum payment today or as a series of payments over many years. Lottery winnings are a rare form of annuity; more commonly, annuities are a type of investment used to provide individuals with a steady income in retirement. |
|
Related Definitions
Articles Of Interest
-
Calculating The Present And Future Value Of Annuities
At some point in your life, you may have had to make a series of fixed payments over a period of time - such as rent or car payments - or have received a series of payments over a period of time, ... -
Passing The Buck: The Hidden Costs Of Annuities
These may look like good retirement vehicles, but beware of the fees buried in the fine print. -
What Is An Annuity?
These contracts provide a guaranteed income stream. Learn how annuities work and their benefits. -
Getting the Whole Story on Variable Annuities
Variable annuities are another way to save money tax-deferred - but don't jump in blindly! -
Selecting The Payout On Your Annuity
Make sure you understand your options for withdrawing your funds from this complex instrument. -
Inflation-Protected Annuities: Part Of A Solid Financial Plan
If you worry about inflation and longevity risks, this may be the investment for you. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
Explaining Amortization In The Balance Sheet
Amortization is important to account for intangible assets. Read to find out more about amortization. -
Top 4 Most Competitive Financial Careers
If your goals include a big paycheck and working for a Wall Street firm, then you need to learn how to meet employers' expectations. -
Should You Buy An Annuity?
For many cash strapped seniors an annuity sounds like the perfect solution. And it can be if you think you’ll outlive your mortality date. The only trouble is that the insurance companies offering ...
Free Annual Reports