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To: whitedog57

Unfunded liabilities are ordinarily imputed given some preset long term interest condition ~ so, what is it? This article doesn’t tell you, but if it’s ZERO PERCENT it will be far different than if it’s EIGHT PERCENT. There are numerous present value calculators on the net ~ here’s one to play with ~ http://www.timevalue.com/products/tcalc-financial-calculators/present-value-calculator.aspx


5 posted on 11/05/2012 10:38:49 AM PST by muawiyah
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To: muawiyah

“Unfunded liabilities are ordinarily imputed given some preset long term interest condition ~ so, what is it?”

Social Security and Medicare trustees use a real (inflation-adjusted) interest rate of 2.9% over the long term since that’s been the average amount of interest paid on long-term U.S. Treasury bills.

http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/downloads/tr2012.pdf (p. 87)


7 posted on 11/05/2012 11:49:01 AM PST by DrC
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