Annuity: Difference between revisions
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imported>Doug Williamson m (Expand to clarify a Time 1 cash flow meaning a cash flow at Time 1 period hence. Similarly the Time n cash flow being at Time n periods hence. Add line space before last sentence.) |
imported>Doug Williamson m (Link with qualifications page.) |
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* [[Annuity formula]] | * [[Annuity formula]] | ||
* [[Annuity ordinary]] | * [[Annuity ordinary]] | ||
* [[CertFMM]] | |||
* [[Pension]] | * [[Pension]] | ||
* [[Perpetuity]] | * [[Perpetuity]] | ||
Revision as of 14:57, 1 November 2014
- A series of equal future periodic cash flows, starting at Time 1 period hence and ending at a predetermined future Time n periods hence.
- 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.
