The Immediate Annuity Calculator is used to estimate the regular payouts for immediate annuities.
An immediate annuity is an annuity providing payment to begin immediately, or within a short period after purchase. You use an immediate annuity when you want to start taking income as soon as possible.
The immediate annuity calculation formula is as follows:
P = periodic payment of an immediate annuity
A = amount of money invest in immediate annuity
r = annual interest rate (annual rate of return for the immediate annuity)
t = number of years you expect to live and receive payments
n = frequency of payments every year