Annuity
From ACT Wiki
1. A series of equal future periodic cash flows, starting at Time 1 and ending at a predetermined future Time n.
2. 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.
3. Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
4. 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.
See also
- Annuity due
- Annuity factor
- Annuity formula
- Annuity ordinary
- Pension
- Perpetuity
- Purchased annuity
- Simple annuity