8:00 AM Central Time is 7:00 AM Mountain Time. Mountain Time is one hour behind Central Time.
In 2009, Ted purchased an annuity for $60,000. The annuity is to pay him $1,500 per month for the rest of his life. His life expectancy is 120 months. A). Ted is not required to recognize any income until he has collected 40 payments (40 $1,500 = $60,000).
How to Calculate the Return on an Annuity. The best way to explain is to look at an example. At first glance, a guaranteed income of $8,400 per year would appear to be equivalent to an 8.4% return. In marketing material describing the annuity, it would refer to the 8.4% as the payout rate.