Annuity
From ACT Wiki
Future periodic cash flows
1. A series of equal future periodic cash flows, starting at Time 1 period hence and ending at a predetermined future Time n periods hence.
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.
Periodic income
1. Any financial arrangement in which a periodic income is paid to an individual, often as a pension.
2. 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.
