Tiêu đề Chapter 1 PartII.pdf ✅

Annuities Annuity: it is an annual income. An annuity is a contract for income payable at regular intervals and at specified amounts. An annuity is a contract between you and financial institution . You make a lump-sum payment or a series of payments, and in return, the financial institution agrees to make periodic payments to you, either immediately or at some future date. Types of Annuities Annuities, in this sense of the word, break down into two basic types: ordinary annuities and annuities due. Ordinary annuities: An ordinary annuity makes (or requires) payments at the end of each period. For example, bonds generally pay interest at the end of every six months. Annuities due: With an annuity due, by contrast, payments come at the beginning of each period. Rent, which landlords typically require at the beginning of each month, is a common example.