"I have an annuity but I need cash now."

[Albert Chan]

(05-08-2024 07:32 PM)KeithB Wrote:  N:360 (30 years - I am 64)
Pmt: -80
FV: 0
I%/yr: 10
P/yr: 12
C/yr: 12

The PV was $9116

I probably would have accepted anything over $7300.

That is way too small amount!

The lower the interest, the higher PV is worth
If rate is 0, PV = -N*PMT = -360 * -80 = 28.8k

C*PV + C(N=-N)*FV + N*PMT = 0        // TVM formula, C = I*N/(1-(1+I)^-N)
PV = -N*PMT / C                                 // FV=0, 2nd term goes away

You had mentioned 3-5% is reasonable rate.

I=3%/12 --> PV ≈ 28.8k / 1.518 = 19.0k
I=5%/12 --> PV ≈ 28.8k / 1.933 = 14.9k

Quote:How much profit you want to give the folks buying the annuity. (20%?)

I would not consider this (how to you even get their profit?)
Instead, consider what is highest acceptable rate (lowest PV)

7.3k buyout corresponded to 13.65% APY
Invest on your own, do you think you can get this?

It may be cheaper just get a regular loan ...