Annuity: Difference between revisions

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imported>Doug Williamson
(Link with Coupon strip page.)
imported>Doug Williamson
(Add link.)
 
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1.  
1. ''Cash flow - equal periodicity.''


A series of equal future periodic cash flows, starting exactly one period into the future.
A series of equal future periodic cash flows, starting exactly one period into the future.




2.  
2. ''Cash flow - variable.''


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 date or already in payment, and usually ending at a later future date.
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 date or already in payment, and usually ending at a later future date.




3.  
3. ''Periodic income.''


Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
Any financial arrangement in which a periodic income is paid to an individual, often as a pension.




4.  
4. ''Insurance.''


An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.  
An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.  
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* [[Annuity formula]]
* [[Annuity formula]]
* [[Annuity ordinary]]
* [[Annuity ordinary]]
* [[Cash flow statement]]
* [[Cashflow]]
* [[Coupon strip]]
* [[Coupon strip]]
* [[Defined contribution pension scheme]]
* [[Growing annuity factor]]
* [[Growing annuity factor]]
* [[Insurance]]
* [[Lump sum]]
* [[Lump sum]]
* [[Pension]]
* [[Pension]]

Latest revision as of 14:14, 10 August 2021

1. Cash flow - equal periodicity.

A series of equal future periodic cash flows, starting exactly one period into the future.


2. Cash flow - variable.

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 date or already in payment, and usually ending at a later future date.


3. Periodic income.

Any financial arrangement in which a periodic income is paid to an individual, often as a pension.


4. Insurance.

An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.


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


See also