ordinary annuity Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter You Tube RSS Feed

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Search Business Glossary:

Business Definition for: ordinary annuity
Dictionary of Accounting Terms
ordinary annuity
See also annuity
Dictionary of Real Estate Terms
ordinary annuity

a series of equal payments, each payment occurring at the end of each equally spaced period.

Example: For a lender the income stream from a standard, fixedrate mortgage loan provides an ordinary annuity (Figure 133).

8001032003-01

Related Terms:
annuity

series of equal periodic payments or receipts. Examples of an annuity are semiannual interest receipts from a bond investment and cash dividends from a preferred stock. There are two types of an annuity: (1) Ordinary annuity, where payments or receipts occur at the end of the period; (2) Annuity due, where payments or receipts are made at the beginning of the period.

Referring Terms:
annuity
present value of annuity
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
 Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Back to Business Glossaries Home

AllBusiness Greatest Hits