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Evaluates lump sum pension settlements versus lifetime monthly payments accounting for life expectancy and returns.

ସୂତ୍ର

PV of Annuity = PMT * [(1 - (1+r)^-n) / r]

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Enter monthly pension payment amount
  2. 2Input discount rate (expected return) and life expectancy
  3. 3Compare lump sum to annuity present value

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
$2,000/month pension, age 65, 3% discount rate, 25-year life expectancy
ଫଳ
Lump sum equivalent ≈ $530,000
Pension decision analysis

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Not considering inflation over time
  • Underestimating life expectancy

ସେଟିଂ