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Here’s a small Excel spreadsheet you can create to convert any single-premium annuity payout into an equivalent annual interest rate. (Boldface cells are for input.)

A

B

1

Premium

$100,000

2

Mo. Payment

$712.50

3

Period in Years

18.16

4

Monthly Rate

0.34%

5

Annual Rate

4.10%

The formula to enter in output cell B4: =RATE((B3*12),B2,-B1))

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