Chapter 11: Glossary of Terms
Glossary of Terms
Annuity
Annuity payment
Annuity due
Future value of any annuity
General annuity
General annuity due
Ordinary general annuity
Ordinary simple annuity
Payment interval
Payment frequency
Present value of an annuity
Simple annuity
Simple annuity due
A continuous stream of equal periodic payments from one party to another for a specified period of time to fulfill a financial obligation.
The dollar amount of the equal periodic payment in an annuity environment.
Annuity payments that are each made at the beginning of a payment interval.
The sum of all the future values for all of the annuity payments when they are moved to the end of the last payment interval.
An annuity in which the payment frequency and compounding frequency are unequal.
An annuity where payments are made at the beginning of the payment intervals and the payment and compounding frequencies are unequal. The first payment occurs on the same date as the beginning of the annuity, while the end of the annuity is one payment interval after the last payment.
An annuity where payments are made at the end of the payment intervals and the payment and compounding frequencies are unequal. The first payment occurs one interval after the beginning of the annuity, while the last payment is on the same date as the end of the annuity.
An annuity where payments are made at the end of the payment intervals and the payment and compounding frequencies are equal. The first payment occurs one interval after the beginning of the annuity while the last payment is on the same date as the end of the annuity.
The amount of time between each continuous and equal annuity payment.
The number of annuity payments in a complete year.
The sum of all the present values for all of the annuity payments when they are moved to the beginning of the first payment interval.
An annuity in which the payment frequency and compounding frequency are equal.
An annuity where payments are made at the beginning of the payment intervals and the payment and compounding frequencies are equal. The first payment occurs on the same date as the beginning of the annuity, while the end of the annuity is one payment interval after the last payment.
