What is Annuity Payments
Annuity Payments is called an fixed payments at a particular time or particular date. In our daily life we always try to choose the payments like every month installment (EMI) instead of paying the amount at a time. because some people don’t want to pay the amount completely at a time and some people will have money problem. when they select to pay like every month installment they need to pay every month or twice in a month based on their plans. when they pay every month or twice in a month those payments are already planned and they give a certain date to repay those amount. that day you have to repay a certain amount. Those payments are called annuity payments. or when you give money to anyone and give a certain date to them to repay your money back that certain day payments are also called as Annuity Payments. When pay or receive the payments at a particular day particular date those all payments are called Annuity Payments.
What Is Annuity Payments Calculator
Annuity Calculator is type of device that will help you to figure out the fixed payments in future that your will pay the amounts in future or you will receive from the certain investment from over time.
This annuity calculator uses the starting principal balance and covers the interest rate receives on the payments over period time and those payments over period time are calculated ans shows the exact results. For this process Annuity Payments are used. simply when we have any payments we will calculate the interest and we will check how much interest we are paying for taking an certain amount or we when we invest our money in an investment or when we start saving our money we will deposit every month some amount in fixed deposits. We can calculate at the end of day how much we are going to get.
Annuity Payments calculator will help you to calculate all those type of payments or returns.
Annuity Payment formula
- PV = Present value of the annuity
- P = Fixed payment
- r = Interest rate
- n = Total number of periods of annuity payments
The valuation of perpetuity is different because it does not include a specified end date. Therefore, the value of the perpetuity is found using the following formula:
PV = P / r
What is an annuity life insurance policy?
Annuity Life Insurance Policy is issued by the insurance company which is designed to grow your fund and investment. Annuity is a stream of income for your savings or a type of payments.
when you invest every month for your life time savings those contributions generally earn the return rate and it is the Tax-defender you u will escape from tax also you will save more money by missing the tax.
Now almost all Annuity companies made that annuity insurance is compulsory. many insurance companies also providing many offers so you don’t need to pay much for annuity insurance also. But if you take Annuity insurance that will help you a lot. if you are looking for a better side in your future make surely insurance to your annuity.
Types Of Annuity
In Annuity there are Two types of annuity’s are there
deferred annuity is a future savings annuity when you invest your money for your future you should have to pay some amount per month based on your plan and based on your income. when you start invest every month in annuity at the end of your scheme they will pay your complete amount with some guarantee interest rate based on your plan and you won’t be charged any tax so you can escape from the tax.
When you invest money for your future the Income Tax Department also don’t charge any tax from you. You will definitely have a advantages by the Deferred Annuity
Deferred Variable Annuity:
Deferred variable annuity is a tax defender which you can’t be charged any tax in the future also when you invest payment and at the end of the retirement they will provide a guarantee payments.
Deferred Fixed Annuity:
Deferred Fixed Annuity is a Fixed setup savings time period when the time period is over your complete amount will comes to you with an fixed rate of interest and with tax defender.
Income Annuity is type of a instant income after the time period is over. that provides the confidence in your investment that you will have income over life time or a some setup period you will definitely get a profitable income.
Variable Income Annuity:
There are some variable Income Annuity are like like savings for future after retirement and some are like fixed deposit’s those fixed deposits you can withdraw whenever you want but you wont get much interest rate against it if yo select future plan you will get money for your life time after when you get retirement.
Fixed Income Annuity:
Fixed Income annuity will give a income for a life time or fixed time based on your annuity plan. these Fixed Income Annuity is one of the bested annuity among all the annuity are mentioned above.
Finally after all this we are telling you invest your money in the Annuity for the life time not for the fixed time. if you invest your money in the annuity after your retirement you will get the money for your life time.
By using the Annuity Calculator you can calculate now itself only how much should invest now and how much you get after your retirement how much the rate of interest you earn in the future you can calculate everything easily in the annuity calculator we have mentioned annuity payments formula also in the above content so you can easily calculate everything now itself only by using the Annuity payments calculator or by using annuity payments also.
we have researched about annuity completely and taken some information from the annuity insurance company employs and we have done your best to explain about annuity and the benefits of the annuity and the advantages of using the annuity payments calculator.