If you have bought the annuity with your pension pot of Rs. 10,00,000 and you will be are getting an Annual Annuity Payment of Rs. 2,16,315.40 for next 6 years, then you can calculate rate of return using below formula:
AAP = [P x r]/[1-(1+r)^-n]
Where – “AAP” is the Annual Annuity Payment, “P” is the Principal Amount, “r” is the Periodic Interest Rate and “n” is the Total number of Payments you receive.
2,16,315.40 = [10,00,000 x r]
2,16,315.40 x [1-(1 + r)^-6] = [10,00,000 x r]
r = 8%
This is a very difficult mathematical calculation, so if you don’t want to do it manually, you can use this calculator.