Patent ID: 7676414

Claim:
A computer-implemented method of administering an annuity account, the method comprising: setting at a processor a first total interest rate, the first total interest rate being applied to the value of the account for an initial period of the account; identifying at the processor a referenced rate of interest as of an initial date; identifying at the processor a referenced rate of interest as of a subsequent date; determining at the processor a second total interest rate for a subsequent period of the account wherein: (A) if the referenced rate of interest as of a subsequent date is less than or equal to the referenced rate of interest as of an initial date, setting at the processor the second total interest rate for a subsequent period to the first total interest rate; (B) if the referenced rate of interest as of a subsequent date is greater than the referenced rate of interest as of an initial date; (i) determining at the processor the increase in the referenced rate of interest by subtracting the referenced rate of interest as of an initial date from the referenced rate of interest as of a subsequent date; (ii) setting at the processor the second total interest rate to the value of the first total interest rate and a factor that is associated in a preset manner to the increase in the referenced rate of interest; and applying at the processor the second total interest rate to the value of the account during the subsequent period of the account.