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Monthly cash flow from a $1 million annuity varies depending on several factors, including the type of annuity purchased, the age at which the annuity payments begin and current interest rates.
Where: PV = present value of the annuity. A = the annuity payment per period. n = the number of periods. i = the interest rate. There are online calculators that make it much easier to compute the ...
Therefore, the future value of your annuity due with $1,000 annual payments at a 5 percent interest rate for five years would be about $5,801.91.
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The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time. Annuities may be calculated by mathematical functions known as "annuity functions". An annuity which provides for payments for the remainder of a person's lifetime is a life annuity. An annuity which continues indefinitely is a ...
Whether an annuity is for the life of the account holder, his or her spouse or a shorter term certain of, for example, 10 or 20 years will affect how much the monthly payout you receive is.
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