Ordinary Annuity

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.

For further information on ordinary annuities see our tutorials on annuities or see the Wikipedia definition.

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.

Return to the Dictionary

Last modified March 23rd, 2016 by Team

You May Also Like