What amount would I have to put aside if I wanted to offer someone a 15 year Annuity with an Annual Payment of 100,000
If an employee was working for 10 years – there would have to be enough money put aside.
In other terms, Present Value of Payment Stream (Cash Out) = Future Value of Payment Stream
Interest Rate : 5.75%
ronb48146
March 9, 2010 at 4:27 pm
I don’t know either. when you get a answer tell me
personal_finance_101
March 9, 2010 at 4:50 pm
Better question is why would you want to give someone an Annuity in the first place? They’re horrible.
Good luck with your homework!
asjrb
March 9, 2010 at 5:24 pm
All my research shows that annuity is a bad investment. There is yearly maintenance fee and there are lot better ways to get money during retirement than purchasing annuity. Go with Roth-IRA.
Frank Castle
March 9, 2010 at 5:55 pm
$500,000.00 USD.