Formulas in Selling Your Annuities
Annuities are assets that offer a safe source of income. It can be acquired as an inheritance, gift or you can purchase it on your own. Selling annuity can be a viable option to have fast cash. You just have to be knowledgeable about the process and relative to it are the formulas used in annuity selling. You must be well-versed about these formulas because you will regularly use this on selling your annuities. These will be very useful for you as a seller because buyers will always have questions about certain annuity computations.
Annuities are priced through the discount rate. You must discount your future payments using the prevailing rate. These discount rates can differ widely from 7% up to 17%; but it can also be larger depending on the buyer. You can receive a lot more for your annuity if your discount rate is lower. Similarly, further out payments can be discounted more; thus you can receive lesser cash at present but your future payments will increase.
Basically, formulas used for selling annuities are similar with those standard financial formulas and symbols. These financial symbols include mathematical variables and symbols. Generally, the symbols to remember and what they stand for are: N as the term in number of periods; g as rate of growth, m as compounding frequency; r or I as the interest rate; CF as cash flow; PMT as the Periodic Payment; FV as Future Value; FVs as Future Value of a single sum; PV as Present Value and j as the jth Period.
Mathematical formulas are also needed to compute the annuity rate. For example if you are computing for the present value of an ordinary annuity, you can just use an ordinary annuity formula. The mathematical equation is the summation of all the present values of the future cash flows.
After the discount rates, the period will come next. In counting for your time period where your annuity will be earning, if the total days accumulated is 120 calendar days (e.g. 30days of four months) and you are paying semi-annually, your regular payment period is 180 days. This is according to a 30/360 day count or equal to 6 months. You can accumulate 60 days worth of interest, that’s 180 days less 120.
If you’re finding it hard to compute the income of your annuity, annuity calculators are available. The present and future values can be computed easily and accurately through this tool. Calculators are available for $35. Be cautious however because different financial calculators works differently.
There is also annuityTable that is offered for calculation of deferred annuities. One example is the PV tables or present value tables. There are also computer softwares for calculating the annuity. MS Excel for instance has simpler and easier formulas for annuity calculation. Websites about annuity computations also abound the internet. One example is Annuity.com
Formulas in selling annuities are very important not only for the buyers but also for sellers. Although there is a presence of computer software, tables, and computers nowadays, it is an essential move to know and be expert with mathematical formulas. These formulas will continuously be relevant as purchases prosper.
Since this is the case, whatever formulas that are very significant must be learned upon and put to mind.
Comments
Menu
My Articles
How To Easily Sell Your Annuity PaymentsGuide To Selling Annuity Payments
Sell Tax Deferred Annuity
The Best Ways To Sell Your Annuity
Sell Annuity Payment To Refinance Home Loans
Useful Facts About Annuity Selling
Where To Sell Annuities Connection
Client-Focused Selling: The Key To Selling Annuities
Sell Annuity Settlement: The Basic Guide
Facts On Selling Annuities
Formulas In Selling Your Annuities
Selling Annuities
Sell My Annuity Payments
Should You Sell Annuity Payments?
Sell Your Annuities Right
Sell Annuity Comparison For Cash
Inherited Annuity: A Boon Or A Bane?
Is Selling Your Annuity Settlement The Ultimate Solution?
Steps In Selling My Annuities
What You Need To Know When Selling Annuity
Sell Retirement Annuity For Lump Sum Payment
Reasons To Sell Structured Settlement Annuity
Understanding Your Rate Of Return
The Basics You Have To Know In Selling Annuities
Related Sites | My Articles Useful Facts About Annuity Selling Do you know how to sell your existing annuity? If you.. Sell Annuity Comparison For Cash Annuity refers to the structured payment plan an individual receives.. Client-Focused Selling: The Key To Selling Annuities Selling annuities is yet another way to earn good money. This is especially.. Guide To Selling Annuity Payments Selling annuity payment is the best way if you really want to.. |
|
|
Related News:
|