An annuity is a type of retirement plan in which the same amount is invested each month and the interest rate remains fixed.
The monthly annuity calculator allows you the option of solving for any of the 4 variables of an annuity.
• Click on the variable you don’t know
• Input the other 3 numbers
• Click on the “CALCULATE” button
• the answer is then displayed
Scroll down for further instructions.
30 years from now, you would like to have $200,000.00 from a pension plan with an annual interest rate of 6 per cent. How much would you have to invest each month to have $200,000.00 when you retire?
We need to know how much per month, so we first click on “Monthly Amount”, then enter 30 years at 6% yearly interest rate for a total of $200,000.00. Click “Calculate” and you see this will require a monthly payment of $198.11.
Use this data to familiarize yourself with the other 3 calculator choices.
Years 30
Yearly Rate 6
Total 200000
Monthly Amount 198.11