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4 Cards in this Set
- Front
- Back
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Single Life Annuity Formula |
Annual annuity payment x Table 1 multiplier = expected Return Amount invested / expected return = Exclusion ratio |
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Joint Annuity where payment stays the same regardless of which spouse dies first |
Annual annuity payments x Table 3 multiplier = Expected Return. Amount Invested / Expected Return = exclusion ratio |
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Joint Annuity, when either spouse dies, surviving spouse receives reduced payment |
Expected Return after first death (Table 3 multiplier x Reduced annual payment) + Expected Return differential (Table 4 multiplier x difference between full payment and reduced payment) = Expected return from annuity Amount Invested / Expected Return = Exclusion Ratio |
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Joint Annuity, when wife dies first, husband received reduced payment |
Expected Return First Annuitant (Full Annual Payment x Table 2 multiplier for age of wife) + Expected Return Second Annuitant (Reduced Payment x Difference between Table 3 multiplier for both ages and Table 2 multiplier for wife) = Expected Return from annuity |
