(a) Table: Age | Average | Immediate Whole Life Annuity at Various Rates of Interest Remaining Lifetime 4% | 6% | 8% | 10% | 12% Years | Years | Dollars | Dollars | Dollars | Dollars | Dollars 1 | 74.97 | 23.6260 | 16.4428 | 12.4579 | 9.9913 | 8.3314 2 | 75.37 | 23.6474 | 16.4480 | 12.4592 | 9.9917 | 8.3315 3 | 74.47 | 23.5988 | 16.4362 | 12.4562 | 9.9909 | 8.3313 4 | 73.54 | 23.5467 | 16.4234 | 12.4530 | 9.9901 | 8.3311 5 | 72.59 | 23.4916 | 16.4095 | 12.4494 | 9.9891 | 8.3308 6 | 71.63 | 23.4337 | 16.3947 | 12.4455 | 9.9881 | 8.3306 7 | 70.67 | 23.3736 | 16.3791 | 12.4413 | 9.9869 | 8.3302 8 | 69.70 | 23.3105 | 16.3623 | 12.4368 | 9.9857 | 8.3299 9 | 68.73 | 23.2450 | 16.3446 | 12.4319 | 9.9843 | 8.3295 10 | 67.75 | 23.1763 | 16.3257 | 12.4266 | 9.9827 | 8.3290 11 | 66.77 | 23.1048 | 16.3057 | 12.4208 | 9.9811 | 8.3285 12 | 65.80 | 23.0313 | 16.2847 | 12.4147 | 9.9792 | 8.3279 13 | 64.82 | 22.9542 | 16.2623 | 12.4080 | 9.9772 | 8.3273 14 | 63.84 | 22.8740 | 16.2385 | 12.4008 | 9.9749 | 8.3266 15 | 62.87 | 22.7916 | 16.2136 | 12.3931 | 9.9725 | 8.3258 16 | 61.90 | 22.7059 | 16.1872 | 12.3848 | 9.9699 | 8.3249 17 | 60.94 | 22.6179 | 16.1597 | 12.3760 | 9.9670 | 8.3240 18 | 59.97 | 22.5255 | 16.1302 | 12.3664 | 9.9638 | 8.3229 19 | 59.02 | 22.4316 | 16.0996 | 12.3562 | 9.9603 | 8.3217 20 | 58.06 | 22.3330 | 16.0670 | 12.3452 | 9.9565 | 8.3204 21 | 57.10 | 22.2307 | 16.0325 | 12.3333 | 9.9524 | 8.3189 22 | 56.15 | 22.1256 | 15.9964 | 12.3207 | 9.9479 | 8.3172 23 | 55.19 | 22.0153 | 15.9579 | 12.3069 | 9.9429 | 8.3154 24 | 54.24 | 21.9020 | 15.9175 | 12.2923 | 9.9374 | 8.3134 25 | 53.29 | 21.7844 | 15.8749 | 12.2765 | 9.9315 | 8.3111 26 | 52.33 | 21.6610 | 15.8293 | 12.2594 | 9.9250 | 8.3085 27 | 51.38 | 21.5342 | 15.7817 | 12.2412 | 9.9178 | 8.3057 28 | 50.42 | 21.4012 | 15.7308 | 12.2213 | 9.9100 | 8.3025 29 | 49.47 | 21.2646 | 15.6775 | 12.2002 | 9.9014 | 8.2990 30 | 48.52 | 21.1228 | 15.6212 | 12.1774 | 9.8921 | 8.2951 31 | 47.57 | 20.9756 | 15.5617 | 12.1530 | 9.8819 | 8.2908 32 | 46.62 | 20.8229 | 15.4988 | 12.1266 | 9.8707 | 8.2860 33 | 45.68 | 20.6660 | 15.4330 | 12.0986 | 9.8586 | 8.2806 34 | 44.73 | 20.5015 | 15.3628 | 12.0682 | 9.8452 | 8.2747 35 | 43.79 | 20.3325 | 15.2894 | 12.0358 | 9.8306 | 8.2681 36 | 42.86 | 20.1591 | 15.2127 | 12.0014 | 9.8149 | 8.2608 37 | 41.92 | 19.9773 | 15.1309 | 11.9639 | 9.7976 | 8.2526 38 | 40.99 | 19.7907 | 15.0454 | 11.9242 | 9.7788 | 8.2437 39 | 40.07 | 19.5993 | 14.9561 | 11.8819 | 9.7586 | 8.2338 40 | 39.14 | 19.3987 | 14.8608 | 11.8361 | 9.7362 | 8.2228 41 | 38.23 | 19.1952 | 14.7625 | 11.7879 | 9.7123 | 8.2107 42 | 37.31 | 18.9819 | 14.6576 | 11.7356 | 9.6859 | 8.1973 43 | 36.41 | 18.7657 | 14.5494 | 11.6808 | 9.6578 | 8.1827 44 | 35.50 | 18.5391 | 14.4341 | 11.6214 | 9.6268 | 8.1663 45 | 34.60 | 18.3070 | 14.3139 | 11.5584 | 9.5934 | 8.1484 46 | 33.71 | 18.0693 | 14.1887 | 11.4916 | 9.5574 | 8.1287 47 | 32.83 | 17.8259 | 14.0583 | 11.4210 | 9.5186 | 8.1073 48 | 31.95 | 17.5739 | 13.9211 | 11.3454 | 9.4765 | 8.0836 49 | 31.08 | 17.3162 | 13.7783 | 11.2654 | 9.4313 | 8.0577 50 | 30.21 | 17.0495 | 13.6281 | 11.1799 | 9.3821 | 8.0291 51 | 29.35 | 16.7767 | 13.4720 | 11.0896 | 9.3293 | 7.9980 52 | 28.49 | 16.4946 | 13.3078 | 10.9931 | 9.2720 | 7.9637 53 | 27.65 | 16.2097 | 13.1393 | 10.8924 | 9.2113 | 7.9267 54 | 26.80 | 15.9118 | 12.9602 | 10.7838 | 9.1448 | 7.8856 55 | 25.97 | 15.6110 | 12.7766 | 10.6706 | 9.0744 | 7.8415 56 | 25.14 | 15.3004 | 12.5838 | 10.5499 | 8.9982 | 7.7930 57 | 24.31 | 14.9794 | 12.3815 | 10.4212 | 8.9157 | 7.7397 58 | 23.49 | 14.6519 | 12.1718 | 10.2858 | 8.8276 | 7.6818 59 | 22.68 | 14.3179 | 11.9545 | 10.1434 | 8.7335 | 7.6192 60 | 21.88 | 13.9774 | 11.7297 | 9.9938 | 8.6332 | 7.5514 61 | 21.09 | 13.6305 | 11.4971 | 9.8367 | 8.5263 | 7.4782 62 | 20.30 | 13.2727 | 11.2536 | 9.6697 | 8.4110 | 7.3981 63 | 19.53 | 12.9132 | 11.0052 | 9.4969 | 8.2900 | 7.3128 64 | 18.76 | 12.5426 | 10.7454 | 9.3136 | 8.1598 | 7.2198 65 | 18.00 | 12.1657 | 10.4773 | 9.1216 | 8.0216 | 7.1196 66 | 17.25 | 11.7825 | 10.2008 | 8.9209 | 7.8750 | 7.0120 Age | Average | Immediate Whole Life Annuity at Various Rates of Interest Remaining Lifetime 4% | 6% | 8% | 10% | 12% Years | Years | Dollars | Dollars | Dollars | Dollars | Dollars 67 | 16.51 | 11.3933 | 9.9159 | 8.7111 | 7.7197 | 6.8964 68 | 15.78 | 10.9981 | 9.6225 | 8.4922 | 7.5554 | 6.7724 69 | 15.06 | 10.5971 | 9.3207 | 8.2638 | 7.3817 | 6.6397 70 | 14.35 | 10.1903 | 9.0104 | 8.0259 | 7.1984 | 6.4978 71 | 13.67 | 9.7901 | 8.7010 | 7.7856 | 7.0108 | 6.3508 72 | 13.01 | 9.3912 | 8.3887 | 7.5399 | 6.8167 | 6.1968 73 | 12.38 | 9.0007 | 8.0791 | 7.2935 | 6.6197 | 6.0387 74 | 11.77 | 8.6133 | 7.7684 | 7.0432 | 6.4174 | 5.8744 75 | 11.18 | 8.2297 | 7.4572 | 6.7897 | 6.2101 | 5.7044 76 | 10.61 | 7.8506 | 7.1462 | 6.5337 | 5.9986 | 5.5290 77 | 10.04 | 7.4629 | 6.8247 | 6.2661 | 5.7752 | 5.3418 78 | 9.48 | 7.0734 | 6.4982 | 5.9916 | 5.5435 | 5.1458 79 | 8.93 | 6.6825 | 6.1671 | 5.7102 | 5.3037 | 4.9408 80 | 8.40 | 6.2978 | 5.8377 | 5.4275 | 5.0604 | 4.7308 81 | 7.90 | 5.9274 | 5.5176 | 5.1500 | 4.8193 | 4.5208 82 | 7.42 | 5.5649 | 5.2014 | 4.8734 | 4.5768 | 4.3077 83 | 6.98 | 5.2266 | 4.9036 | 4.6107 | 4.3445 | 4.1018 84 | 6.57 | 4.9061 | 4.6192 | 4.3578 | 4.1191 | 3.9006 85 | 6.17 | 4.5884 | 4.3351 | 4.1033 | 3.8906 | 3.6950 86 | 5.80 | 4.2900 | 4.0664 | 3.8608 | 3.6713 | 3.4964 87 | 5.43 | 3.9873 | 3.7918 | 3.6112 | 3.4441 | 3.2892 88 | 5.09 | 3.7052 | 3.5342 | 3.3755 | 3.2282 | 3.0911 89 | 4.77 | 3.4362 | 3.2870 | 3.1480 | 3.0185 | 2.8975 90 | 4.47 | 3.1810 | 3.0510 | 2.9296 | 2.8160 | 2.7095 91 | 4.18 | 2.9314 | 2.8190 | 2.7136 | 2.6146 | 2.5216 92 | 3.92 | 2.7052 | 2.6076 | 2.5158 | 2.4293 | 2.3478 93 | 3.69 | 2.5032 | 2.4179 | 2.3375 | 2.2616 | 2.1897 94 | 3.50 | 2.3350 | 2.2593 | 2.1878 | 2.1201 | 2.0560 95 | 3.33 | 2.1833 | 2.1159 | 2.0520 | 1.9914 | 1.9339 96 | 3.18 | 2.0487 | 1.9882 | 1.9307 | 1.8761 | 1.8242 97 | 3.06 | 1.9404 | 1.8852 | 1.8326 | 1.7827 | 1.7351 98 | 2.95 | 1.8407 | 1.7901 | 1.7419 | 1.6961 | 1.6523 99 | 2.85 | 1.7497 | 1.7032 | 1.6588 | 1.6165 | 1.5752 100 | 2.77 | 1.6766 | 1.6333 | 1.5919 | 1.5524 | 1.5146
(b) Example: Joe Doe is entitled to receive the income from a principal sum of ten thousand dollars ($10,000) during the life of one Martha Jones, fifty-five (55) years of age. There is a emainder estate in favor of Timothy Doe. In an appropriate proceeding a court in Arkansas has determined that the life tenant is to be paid a lump sum in commutation of his right to income for the life of Martha Jones; the court has further determined that four percent (4%) is the rate of interest obtainable on an investment of a sum of the size of the principal sum. In the table, follow the left-hand column, which is labeled “age”, down vertically until fifty-five (55) is reached; then move horizontally until the column headed “4%” is intersected. At the intersection is found the figure: 15.6110. This figure is to be multiplied by the yearly income, which is found by multiplying the principal sum by the appropriate rate of interest. In this case that would be ten thousand dollars ($10,000) multiplied by .04 equalling four hundred dollars ($400). Then 15.6110 multiplied by four hundred dollars ($400) equals six thousand two hundred forty-four dollars and forty cents ($6,244.40). This is the sum which the court would direct to be paid to Joe Doe in commutation of his income right. Timothy Doe would be paid three thousand seven hundred fifty-five dollars and sixty cents ($3,755.60). See § 18-2-106: principal sum ten thousand dollars ($10,000) minus commuted life interest six thousand two hundred forty-four dollars and forty cents ($6,244.40) equals commuted remainder three thousand seven hundred fifty-five dollars and sixty cents ($3,755.60).