Annuity Factor
Annuity Factor definition :
Present value of $1 paid for each of t periods.
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annuity factor
mathematical figure showing the present value of an income stream that generates one dollar of income each period for a specified number of periods.
Dictionary of Real Estate Terms ...
ANNUITY FACTOR - Present value of $1 paid for each of t periods.
ANNUITY IN ADVANCE - A form of periodic payment. Payments are made at the beginning of each payment per...
Annuity Factor = factor that converts a Present Value to an annuity. Abbreviated as A/P . Also called the Capital Recovery Factor
Annuity Fund = fund required to pay a specified annuity. Abbreviation P/A .
having the payments and the rate and needing the present value, one often needs to calculate the correct payment given the desired present value, rate and the time the annuity will last for. This requires using the formula for the annuity factor and ...
Equivalent annual cost. The net present value (NPV) of cost divided by an annuity factor that has the same life as the investment
Similar financial terms
Each way
On both purchase and disposal, as of a broker's commission.
Annuities
A derivation of the present value formula for an annuity. Includes an annuity factor table.
Perpetuities
Derivation of the present value of a perpetuity and the present value of a growing perpetuity.
EAC is calculated by dividing the NPV of a project by the present value of an annuity factor. Equivalently, the NPV of the project may be multiplied by the loan repayment factor.
When an individual purchases an annuity, they usually pay a lump sum from their RRSP, or other source of funds, to an insurer. The insurer then takes this (premium) and divides by an annuity factor based on mortality, ...
An annuity with n payments, where the first payment is made at time t = 0, and the last payment is made at time t = n - 1.
Annuity factor
Present value of $1 paid for each of t periods.
Annuity in arrears ...
may have more complicated features such as indexing, guarantee periods and benefits payable to a spouse or other beneficiary after the death of the annuitant. The periodic payment may be calculated by dividing a lump sum amount by an annuity factor ...
fund in a manner that supports retirement income for their lifetime. Each year's Income Tax Act specifies the minimum and maximum withdrawal amounts for LIF owners, which takes into consideration the LIF fund balance and the owner's annuity factor.
mortality basis A mortality basis is a specific mortality table that is used to compute insurance values for life insurance and annuity factors for annuities.
annuity factor method A distribution calculation method for making penalty-free early withdrawals... annuity unit An accounting measure used to determine the quantity of an annuity payment....
 See also: Invoice, Arbitrage pricing, Amortization factor, Asset pricing model, Expense
  
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