I would take the annuity with 75% survivor. Even though it is the lowest monthly amount, it is still paying 5.65%, if my math is correct. That's good in todays environment. It also protects your wife, if something happens to you. Just my opinion.
That's not a rate of return, unless I am mistaken. You don't know how many years he will be collecting the $3792. If it's for 20 years, rate of return would be 1.34%. In 20 years, he would collect approximately $76000.
Present value is calculated by multiplying the amount of each annuity payment by the interest rate between payments and the number of periods in the annuity. As an equation, it is: PV = PMT * [(1-(1+r)^-n)/r], in which PV = present value, PMT = payment amount, r = interest rate and n = number of periods.
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