Annuity

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Revision as of 10:16, 31 May 2015 by imported>Doug Williamson
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Future periodic cash flows

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

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


Periodic income

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