What is an Ordinary Annuity?
An ordinary annuity is a series of annual payments made at the end of each year for a fixed number of years. Annuities with payments at the end of each year are sometimes referred to as regular annuities or simply annuity.
There are two types of annuity, ordinary annuity and annuity due. The Annuity due is similar to the ordinary annuity except that the payments are made at the beginning of each period.
Learn a new bookkeeping term
Random bookkeeping terms for you to discover.
Link to this page
Click in the box and paste the link to your site.