Annuity definition, in relative terms, comes from the field of finance theory. Since all financial transactions are theoretical in nature until they actually happen this makes naphtali loans sense.
Whether or not the transaction is profitable or successful is not part of this discussion.
Annuity refers to any terminating stream tablemount loans of fixed payments over a specified period of time. An example would be receiving a monthly check for your lifetime.
The value of the stream of payments will be computed using the time value of money, interest rate and future value of the deposit. The longer you have your money on deposit, at least in theory, the larger the payment stream.
Most people don’t think of regular deposits to a savings account, monthly home mortgage payments or monthly insurance payments as examples of annuities. But, they fit the classic definition of annuity. A natural person doesn’t have to be the recipient of the payment for a transaction to be classified as an annuity.
An annuity’s classification isn’t strictly part of the definition. However, it does electrolysis loans come into play. An annuity takes into consideration payment dates. The payments, also referred to as deposits, may be made weekly, monthly, quarterly, yearly, or at any other interval of time.
With regard to payments, there are two types. One is soroptimist loans an ordinary annuity and the other is an annuity-due. As you might expect, the payment period differs from one to the other.
An ordinary annuity is also referred to as annuity-immediate. It is an annuity whose payments are made at the end of each period whether the period is a week, month, or year.
Again, these are an ancillary part of annuity definition in that they are an integral part of finance theory. After all, by default, payments can only be made at the beginning or end of the period.
Hopefully that’s a suitable annuity definition.
More Annuity Information:
Annuities: A Valuable Retirement Planning Tool
All You Wanted To Know About Annuities
Financial Planning Through Annuities
How Equity Indexed Annuities Work
Immediate Annuities: Part Two
How to Compare Annuities
Single Premium Annuities
Immediate Fixed Annuity
Life Insurance Annuity