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Assumed interest rate

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assumed interest rate investment & finance definition
An interest rate used by an insurance company to calculate the payout on an annuity contract. Typically, a monthly annuity payment correlates to the level of interest rates. See also annuity.

 


Assumed Interest Rate - AIR
The rate of interest, or growth rate, selected by an insurance company.

Assumed interest rate
Rate of interest used by an insurance company to calculate the payout on an annuity contract.
Assumption
Becoming responsible for the liabilities of another party.

It is similar to defined benefit plan in that the annual contribution is determined by a formula to calculate the amount needed each year to accumulate (at an assumed interest rate) a fund sufficient to pay a projected retirement benefit, ...

See also: Share, Rate, Interest, Interest Rate, Investment

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