L | ANNUITY

• ANNUITY

  • series of equal payments that are made at the end of equidistant points in time such as monthly, quarterly, semi – annually, or annually over a finite period of time.
• ORDINARY ANNUITY

  • Payments are made at the end of each period
• SIMPLE ANNUITY

  • payment period = interval period
• GENERAL ANNUITY

  • payment period ≠ interval period
• PAYMENT PERIOD

  • period where payment are made
• INTERVAL PERIOD

  • period where interest is earned