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.


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BREAKING DOWN '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.

  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Future Value Of An Annuity

    The value of a group of payments at a specified date in the future. ...
  3. Deferred Annuity

    A type of annuity contract that delays payments of income, installments ...
  4. Annuity Contract

    The written agreement between an insurance company and a customer ...
  5. Immediate Payment Annuity

    An annuity contract that is purchased with a single lump-sum ...
  6. Annuity Due

    An annuity whose payment is to be made immediately, rather than ...
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    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  3. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  4. Can I borrow from my annuity to put a down payment on a house?

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