3870 East Flamingo Road, Suite A-2 Las Vegas, Nevada 89121 Phone: 1-702-432-5587 Fax: 1-702-431-5219

Component Method

A method of developing a reserve funding plan where the total contribution is based on the sum of contributions for individual components.

Sometimes also called Straight-line Calculation, it does not take into consideration current reserve funding balances, interest rates or inflation factors. We use the Component Method to calculate our starting Annual Reserve Contribution figure as well as our minimum Threshold level.

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