Annuity: Difference between revisions

Revision as of 20:41, 27 July 2013

A series of equal future periodic cash flows, starting at Time 1 and ending at a predetermined future Time n.
More generally, any series of future periodic cash flows, either equal in amount or growing at a fixed compound rate per period, starting at a future time or already in payment, and usually ending at a later future time.
Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.

There are many variations on such annuities, depending on the nature of the income stream.

@@ Line 1: / Line 1: @@
-.
+#A series of equal future periodic cash flows, starting at Time 1 and ending at a predetermined future Time n.
-A series of equal future periodic cash flows, starting at Time 1 and ending at a predetermined future Time n.
+#More generally, any series of future periodic cash flows, either equal in amount or growing at a fixed compound rate per period, starting at a future time or already in payment, and usually ending at a later future time.
+#Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
-.
+#An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.
-More generally, any series of future periodic cash flows, either equal in amount or growing at a fixed compound rate per period, starting at a future time or already in payment, and usually ending at a later future time.
-.
-Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
-.
-An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.
 There are many variations on such annuities, depending on the nature of the income stream.
@@ Line 21: / Line 14: @@
 * [[Purchased annuity]]
 * [[Simple annuity]]
+[[Category:Pensions_Risk]]