Formula for the payment of annuities?
I try to understand what the formula is to determine what portion of a payment from my parents should obtain. Now, I already know what the company told them they should get, but I want to see how this number has been reached. I found some sites where you can plug in the numbers but I want to see what the current formula. My parents have such a pension of 9800 the current value. they want to start payments on it and in 20 years is zero's out. The fixed interest rate is 4%. I think the company has come with something like 721 per year. I just want to understand how they got that number. Does anyone know what the formula is?
http://www.dinkytown.net/java/ImmediateAnnuity.html the formula is here: http://beginnersinvest.about.com/gi/dynamic/offsite.htm?zi=1/XJ/Ya&sdn=beginnersinvest&cdn=money&tm=8&f=00&tt=14&bt=1&bts=1&zu=http% 3A / / www .1728.com/annuity.htm is just $ 721.10.
Fixed Annuities and Annuity Products at The Annuity Shoppe
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