Here’s a small Excel spreadsheet you can create to convert any single-premium annuity payout into an equivalent annual interest rate. (Boldface cells are for input.)
A |
B |
|
1 |
Premium |
$100,000 |
2 |
Mo. Payment |
$712.50 |
3 |
Period in Years |
18.16 |
4 |
Monthly Rate |
0.34% |
5 |
Annual Rate |
4.10% |
The formula to enter in output cell B4: = RATE((B3*12),B2,-B1))
The formula in output cell B5: = POWER(1+B4,12)-1