Ordinary Annuity Definition

Ordinary Annuity Definition In return the insurer the insurance company agrees to make periodic payments to you the insured beginning immediately or at some date in the future.

Ordinary annuity definition. This future return comes from the sum of compound interest of each cash flow of invested funds at the end of the lifetime of such annuity. An ordinary annuity is a series of payments having the following three characteristics. In other words the annuitant receives payouts at the end of each month the end of.

Ordinary annuity noun an annuity paid in a series of more or less equal payments at the end of equally spaced periods How to pronounce ordinary annuity. An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. Contrast with annuity due which is a series of equal payments made at the beginning of each period.

The future value of an ordinary annuity refers to the future returns of periodic equal cash flows that occur at the end of each period. Annuities typically are used as an investment tool to plan for retirement. Annuity rente - income from capital investment paid in a series of regular payments.

Define Ordinary Annuity. This is different from an annuity due which is paid at the beginning of each interval. Ordinary-annuity meaning A series of equal payments that are made at equal intervals to the owner of the annuity in exchange for the owners investment of a fixed amount of cash.

Return of basis capital gain and ordinary income earned on the money in the annuity. All payments are in the same amount such as a series of payments of 1000. Present value of an ordinary annuity definition The discounted value of a series of equal amounts occurring at the end of each equal time interval.

A series of equal payments made at the end of each payment period. Ordinary annuity - an annuity paid in a series of more or less equal payments at the end of equally spaced periods. Join PRO or PRO Plus and Get.