Exclusion Ratio Calculator
Definitions
Exclusion Ratio (ER): A percentage that represents the portion of an annuity payment that is a return of the original investment, which is not subject to income tax.Total Investment: The total amount invested in the annuity.Expected Return: The total amount expected to be returned over the life of the investment.Life Expectancy: The expected number of years the return will be received.
Example
Let's say the Total Investment is $100,000, the Expected Return is $150,000, and the Life Expectancy is 20 years. Using the formula:
\[
ER = \left( \frac{100,000}{150,000} \right) \times \left( \frac{1}{20} \right) \times 100\%
\]
We get:
\[
ER \approx 0.33\%
\]
So, the Exclusion Ratio is approximately 0.33%.
Extended information about "Exclusion-Ratio-Calculator"
Exclusion Ratio Calculation in Annuities
Definition: The exclusion ratio in annuities determines the portion of each annuity payment that is excluded from taxable income.
Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)
\( \text{Exclusion Ratio} \): Portion of each payment excluded from taxable income
\( \text{Investment in the Contract} \): Total amount invested in the annuity
\( \text{Expected Return} \): Total expected return from the annuity
Example: \( \text{Exclusion Ratio} = \frac{100000}{200000} \)
Investment in the Contract: $100,000
Expected Return: $200,000
How to Calculate Exclusion Ratio on Annuity
Definition: The exclusion ratio on an annuity is used to determine the non-taxable portion of each annuity payment.
Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)
\( \text{Exclusion Ratio} \): Portion of each payment excluded from taxable income
\( \text{Investment in the Contract} \): Total amount invested in the annuity
\( \text{Expected Return} \): Total expected return from the annuity
Example: \( \text{Exclusion Ratio} = \frac{150000}{300000} \)
Investment in the Contract: $150,000
Expected Return: $300,000
Annuity Exclusion Ratio Calculation
Definition: This calculation determines the exclusion ratio for an annuity, which is the portion of each payment that is not subject to tax.
Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)
\( \text{Exclusion Ratio} \): Portion of each payment excluded from taxable income
\( \text{Investment in the Contract} \): Total amount invested in the annuity
\( \text{Expected Return} \): Total expected return from the annuity
Example: \( \text{Exclusion Ratio} = \frac{200000}{400000} \)
Investment in the Contract: $200,000
Expected Return: $400,000
Exclusion Ratio Annuity Formula
Definition: The exclusion ratio formula for annuities calculates the non-taxable portion of each payment.
Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)
\( \text{Exclusion Ratio} \): Portion of each payment excluded from taxable income
\( \text{Investment in the Contract} \): Total amount invested in the annuity
\( \text{Expected Return} \): Total expected return from the annuity
Example: \( \text{Exclusion Ratio} = \frac{250000}{500000} \)
Investment in the Contract: $250,000
Expected Return: $500,000
Size Exclusion Coefficient Calculation
Definition: The size exclusion coefficient is used in chromatography to determine the separation of molecules based on size.
Formula: \( K = \frac{V_e - V_0}{V_t - V_0} \)
\( K \): Size exclusion coefficient
\( V_e \): Elution volume of the molecule
\( V_0 \): Void volume of the column
\( V_t \): Total volume of the column
Example: \( K = \frac{30 - 10}{50 - 10} \)
Elution Volume: 30 mL
Void Volume: 10 mL
Total Volume: 50 mL
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