Tag: present value

Present value of the payments from the lottery

Annuity
scrap metal value of cast iron bath

Present value of the payments from the lottery Each year thousands of lottery winners turn their future Lottery payments in current money. The value of the future payments from the lottery to depreciate considerably during the traditional schedule payment of 20-25 years. Often the beneficiaries of lottery payments receive less than the amount offered by […]

Why present value of the annuity is higher than normal annuity?

Annuity
Sell home against an annuity

Why “present value” of the “annuity” is higher than “normal” annuity? Why is the current value of the premium is higher than the ordinary annuity? To answer this question, let’s look at the same time understanding the difference between these two. Annuity due annuity payment stream is fixed that at the beginning of each period […]