About Annuity Cost Calculator (Formula)
The Annuity Cost Calculator employs the following formula to estimate the annuity cost:
AC=AV∗AR/100
Where:
- Annuity Cost (AC) represents the cost associated with an annuity.
- Account Value (AV) is the initial value or amount invested in the annuity.
- Annuity Rate (AR) denotes the annual percentage rate applied to the account value.
This calculation is particularly useful for individuals and investors looking to understand the potential cost of an annuity investment based on the initial account value and the annual percentage rate. It assists in financial planning and decision-making regarding annuity purchases.