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URL:  http://boards.fool.com/pension-of-12000yr-for-7-years-interest-rate-29186698.aspx

Subject:  Re: Lump Sum vs Pension Annuity Date:  3/21/2011  10:23 PM
Author:  pauleckler Number:  68678 of 75797

Pension of $12,000/yr for 7 years							
							
							
Interest rate=		5.00	%				
Lump sum=		69437.00					
							
Year	         1	2	3	4	5	6	7
							
Interest	3471.85	3045.44	2597.71	2127.60	1633.98	1115.68	571.46
Principle	8528.15	8954.56	9402.29	9872.40	10366.02	10884.32	11428.54
							
Total	     12000.00	12000.00	12000.00	12000.00	12000.00	12000.00	12000.00
							
Remainder	60908.85	51954.29	42552.01	32679.61	22313.59	11429.27	0.73
							
							
Interest rate=		4.50	%				
Lump sum=		70713.00					
							
Year	         1	2	3	4	5	6	7
							
Interest	3182.09	2785.28	2370.62	1937.29	1484.47	1011.27	516.78
Principle	8817.92	9214.72	9629.38	10062.71	10515.53	10988.73	11483.22
							
Total	     12000.00	12000.00	12000.00	12000.00	12000.00	12000.00	12000.00
							
Remainder	61895.09	52680.36	43050.98	32988.27	22472.75	11484.02	0.80

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