EIRSL12 calculates the effective interest rate for single life annuity based on the same parameters that are used for the PVSL12 function. When using spot rates, forward rates, deferred & immediate rates, select & ultimate rates, segment rates, this returns the single interest rate that produces the same present value. Obviously, this is not useful when using a single interest rate.
As for the PVSL12 function, this
function has the following simplifying parameters:
·
Frequency
= 12 (monthly)
·
COLA = 0 (no COLA)
·
CalculationMethod
= 1 (exact method)
·
NoPreRetMort
= 0 (use
pre-retirement mortality)
·
AnnTiming
= 0 (beginning of month)
Syntax
EIRSL12(CurrentAge, CommencementAge, InterestRate,
MortalityTable, [YearsCertain], [StopAge], [Times12],
[Rounding])
|
Parameter Name |
Description |
|
CurrentAge |
Current age of the annuitant (i.e. the
age at the valuation date). May be provided as an integer, or as a fractional
amount (e.g. years & months). |
|
CommencementAge |
Age of annuitant at benefit
commencement. ·
If CommencementAge >
CurrentAge then it will be valued as a deferred annuity. ·
If CommencementAge
is missing or zero, then CommencementAge is assumed to be = CurrentAge
and it will be valued as an immediate annuity |
|
InterestRate |
The interest rate(s) to discount future
payments to calculate the present value. May be a number, a percentage, a
text string, a named range, or reference to a range. ·
Rates
can be defined using these interest definitions. ·
Note:
A value that is greater than 25% (i.e. 0.25) will be divided by 100; e.g.
if you enter 2.75 it will be treated as .0275 or 2.75%. |
|
MortalityTable |
Mortality
table definition text string. |
|
YearsCertain |
Number of years guaranteed payments. May
be an integer, or a factional amount (e.g. years & months). |
|
StopAge |
Age when the annuity benefit
stops -- no payment at this age. |
|
Times12 |
TRUE or FALSE. Multiply the
resulting factor by 12. |
|
Rounding |
Number of decimal places for
rounding. |
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