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Subject: Re: Pension figured into Networth???  Date: 10/15/1999 2:09 PM  
Author: GrayWulff  Number: 14578 of 81362  
Let's say you will be receiving this pension next year and it will be paid on a yearly basis and let's use your 6% and assume you will receive this $45,000/yr for another 30 years. N=30 I/Y=6 PMT=45,000 FV=0 CPT PV (Compute PV) = $134,582.86  JABoa is the math king around here. He can speak to the details. My eyeball approximation says that $134,582.86 is to small. Assuming beginning of year payment, then first year alone is 45k, second year is roughly $42,450, and third year is roughly 40k for a 3 year total of 127,450; the remaining 27 years must be worth more than $7,200. Even assuming end of year payments, I doubt value would drop that low. Yes, I get a PV of $619,417 for the same data (end of period payments.) So a value of $600k to $700k seems reasonable. Cheers, GW 

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