Annuity tables are complex devices that are used to determine the type of returns one can expect after investing in such a plan. Annuities themselves are typically purchased at the point of retirement using a pension fund. The calculation devices are in a tabular form and has columns and several graphical representations. They are very effective when it comes to calculation of annuity factors.
They enable one to know how much returns are expected after a he invests in annuity plans. Just as the name suggest, they are in tabular form. The information they have is usually in calculation of the factor. Therefore, it is important for you to know which table you need to use. This is because, using the wrong table can lead to huge losses.
There are many types of such tables. The present value table is a good example. It provides one with the factor that can be used to know what a group of payments made in the future are valued presently. This table is used if the payments are going to be made at the end of the designated period.
Another common table that is used is present value due. It is used to obtain the factor which helps one to discern the amount of money that a group of payments made in the future, are valued today. It can only be applied if the payments are made at the start of the term.
Then there is the future value. This shows the factor that is used when a financier wants to inquire about how much the deposit he made will be worth after a number of payments are made in the future. This is applicable if the payments or deposits take place at the end of the duration.
The other type of annuity tables is the future value of annuities due table. It indicates the factor that will be used when investors want to find out how much the deposit they have made will be worth after they make a number of payments in the near future. That is if the deposits are made at the beginning of the transaction period.
Author: Peter JonesThis author has published 10 articles so far.