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  • What Is Annuity

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    Kristian Yvan Palma Reyes
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    An annuity is a guaranteed stream of regular payments made to an individual, usually for retirement purposes. There are different types of annuities including ordinary annuities where payments are made at the end of each period, deferred annuities which offer income from a future date chosen by the individual, and annuities due where payment is made at the beginning of each period. Perpetuities are annuities that provide payments indefinitely. Annuities are important in economics as they help individuals accumulate funds for future income needs like retirement through guaranteed regular payments over time.

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    What is annuity

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    An annuity is a guaranteed stream of regular payments made to an individual, usually for retirement purposes. There are different types of annuities including ordinary annuities where payments are made at the end of each period, deferred annuities which offer income from a future date chosen by the individual, and annuities due where payment is made at the beginning of each period. Perpetuities are annuities that provide payments indefinitely. Annuities are important in economics as they help individuals accumulate funds for future income needs like retirement through guaranteed regular payments over time.

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    7 views1 page

    What Is Annuity

    Uploaded by

    Kristian Yvan Palma Reyes
    An annuity is a guaranteed stream of regular payments made to an individual, usually for retirement purposes. There are different types of annuities including ordinary annuities where payments are made at the end of each period, deferred annuities which offer income from a future date chosen by the individual, and annuities due where payment is made at the beginning of each period. Perpetuities are annuities that provide payments indefinitely. Annuities are important in economics as they help individuals accumulate funds for future income needs like retirement through guaranteed regular payments over time.

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    . What is annuity?

    Ans: Annuity is a certain amount of money given to someone annually. It is a contract with you
    and someone, offering a guaranteed income usually for retirees.

    2. What is ordinary annuity?


    Ans: Ordinary annuity is a series of regular payments made at the end of each period, such as
    monthly or quarterly.

    3. What is deferred annuity?


    Ans: Deferred annuity is a life insurance plan designed specifically for your retirement that
    offers you a fixed income from a future date chosen by you.

    4. What is annuity due?


    Ans: Annuity due is an annuity whose payment is due immediately at the beginning of each
    period.

    5. What is perpetuity?
    Ans: Perpetuity is a type of annuity that lasts forever, into perpetuity. The stream of cash flows
    continues for an infinite amount of time.

    6. Importance of annuity in economics?


    Ans: annuity helps you accumulate money for future income needs. An annuity is not a savings
    account or savings certificate, and it should not be bought for short-term purposes. The most
    appropriate use
    for income payments from an annuity contract is to fund your retirement.

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