Lump-Sum Pensions and Interest Rates: How Lump-Sums Can …

Pension math uses the same formula, except you are calculating the lump-sum based on the monthly pension payments. If you had a monthly pension of $477, the rate used to calculate the lump-sum was 4%, and the period of time you would collect the pension was 30 years, your lump-sum would be $100,000. 1 This is called a ‘present value ... ................
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