How to calculate present value of an annuity?

Or you can use an annuity table. The information you’ll need to calculate present value of an annuity includes: Payment amount. Amount of money you envision getting paid by period (monthly, quarterly or annually). Interest rate. The interest rate per period. Number of time periods. The number of periods applied to the interest rate calculation.

What is an annuity amount & rate of return?

Annuity amount — The amount of regular deposit or withdrawal. Length of annuity — The interval during which the annuity pays. Rate of return — The interest rate by which an annuity grows each year. Annual growth rate — By this option, you can set a specific rate of change (increase or decrease) in your annuity payout.

How much do annuities cost?

Commissions –Annuities are generally sold by insurance brokers who charge a fee of anywhere from 1% for the most basic annuity to as much as 10% for complex annuities indexed to the stock market. In general, the simpler the annuity structure or the shorter the surrender charge period, the lower the commission.