Arkansas Code of 1987 (2023) › Title 18 - PROPERTY (§§ 18-1-101 — 18-61-106) › Subtitle 1 - GENERAL PROVISIONS (§§ 18-1-101 — 18-4-208) › Chapter 2 - COMMUTATION OF INTERESTS (§§ 18-2-101 — 18-2-106) › Section 18-2-105 - Table and example

(a)
TABLE:
Age
Average Remaining Lifetime
Immediate Whole Life Annuity at Various Rates of Interest
Years
Years
4% Dollars
6% Dollars
8% Dollars
10% Dollars
12% 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
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).
Acts 1981, No. 350, § 5; A.S.A. 1947, § 50-705.