The math associated with Secondary Market Annuities is discounted cash flow math. The basic premise of course is that a dollar tomorrow is worth less than a dollar today… How much less depends on the discount rate.
With Secondary Market Annuities, we have all the information needed to calculate the present value of these payment streams. We have the payments, the dates, the discount rate, and we can arrive at a present value or purchase price.
Use the tool below to modify any of the cases on our inventory to arrive at new purchase prices or solve for a new price based on a new anticipated close date.