Question

You just paid $574,000 for an annuity that will pay you and your heirs $14,000 a year forever. what rate of return are you earning on this policy?

Answer 1

Simply paying $574,000 for an annuity is a good way to pay you and your heirs $14,000 a yr for all time. what fee of return are you earning on this coverage 2.44%

The components of an annuity are:

total quantity = cash glide every yr fee of return

574, 000 = 14,000 charge of go back

rate of go back = frac{14,000}{574,000}

charge of go back=zero.0244

The fee of going back that you will be earning in this coverage is two. forty four%

An annuity is protracted-term funding this is issued by a covered employer and is designed to help defend you from the hazard of outliving your profits. through annuitization, your buy payments (what you make a contribution) are transformed into periodic bills which can final for existence.

An annuity is a sequence of payments made at identical intervals. Examples of annuities are regular deposits to a financial savings account, month-to-month domestic loan payments, month-to-month insurance payments, and pension payments. Annuities can be categorized by using the frequency of fee dates.

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