Here's a small Excel spreadsheet you can create to convert any single-premium annuity payout into an equivalent annual interest rate. (Boldface cells are for input.)
|
|
A |
B |
|
1 |
Premium |
$100,000 |
|
2 |
Mo. Payment |
$712.50 |
|
3 |
Period in Years |
18.16 |
|
4 |
Monthly Rate |
0.34% |
|
5 |
Annual Rate |
4.10% |
The formula to enter in output cell B4: =RATE((B3*12),B2,-B1))
The formula in output cell B5: =POWER(1+B4,12)-1
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