Pages

Wednesday, January 9, 2013

Everything You Should Know About Different Annuity Tables

By Peter Jones


Annuity tables are complex devices that are used to determine the type of returns one can expect after investing in such a plan. Annuities themselves are typically purchased at the point of retirement using a pension fund. The calculation devices are in a tabular form and has columns and several graphical representations. They are very effective when it comes to calculation of annuity factors.

They enable one to know how much returns are expected after a he invests in annuity plans. Just as the name suggest, they are in tabular form. The information they have is usually in calculation of the factor. Therefore, it is important for you to know which table you need to use. This is because, using the wrong table can lead to huge losses.

There are many types of annuity tables. You have to do some research before deciding on the one to use. There is the present value table. It provides you with a factor which enables you to calculate the current worth of a number of future payments. This is used when the deposits are to be made at the end of your term.

Then there is the present value due table. The factors it has allow you to find out the current worth of payments that are made in the future. Unlike in the previous case, the deposits are made at the beginning of your term.

A future value table is also commonly used. It provides the factor which is utilized, when an investor wants to know the value of his returns, after a group of payments in the future, if he or she deposits or makes payment. This factor is used in cases where the disbursements are made at the end of the term.

The other type of annuity tables is the future value of annuities due table. It indicates the factor that will be used when investors want to find out how much the deposit they have made will be worth after they make a number of payments in the near future. That is if the deposits are made at the beginning of the transaction period.




About the Author:



No comments:

Post a Comment