Annuity

Annuity is a product sold by financial institutions, designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments at a later point in time.

Annuity

Annuity is a product sold by financial institutions, designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments at a later point in time. Annuities are classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other interval of time.


Annuity Calculation

See Annuity - Wikipedia.

Interpretation of Annuity

Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. Annuities can be fixed, variable or equity-indexed.

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