Bimmerbill
Thinks s/he gets paid by the post
- Joined
- Jan 26, 2006
- Messages
- 1,645
Hello, I'm trying to determine the present value of a part of my pension (present value of defferred annuity). I can't figure out how to account for the years I still need to work before I draw the pension.
I'm 44, will draw at 62. Paymets are $3960 a year. I'd like to assume 20 year payout, no COLA. I'd like to use int rate of current Tbill, or 3.12% as int rate.
I think I compute PV, first. But don't know how to shift that value from 18 years in the future (when I'm 62) to now. Its like I need a PV of a future lump sum but can't find the excel formula.
I'm 44, will draw at 62. Paymets are $3960 a year. I'd like to assume 20 year payout, no COLA. I'd like to use int rate of current Tbill, or 3.12% as int rate.
I think I compute PV, first. But don't know how to shift that value from 18 years in the future (when I'm 62) to now. Its like I need a PV of a future lump sum but can't find the excel formula.