Annuities

2007An rente consists of a serial of equal recompenses over a specified dot of view (metalworker , Skousen , Stice Stice , 1998 . An rente is a bit of equal finaleic compensations do at equal epoch separations for purposes of paying a add or creating a keep going . Interest salarys on bonds , premiums on indemnity , payments on installing purchases , and payments of rent argon examples of rente . The payment intervals for the payment of rente may be of either length , but the airless to commonly used atomic number 18 the annual , semi-annual , quarterly , and monthly payment intervalsSimple annuity is an annuity whose payment interval is the the likes of as the interest termination . There argon annuities that atomic number 18 fixed , meaning that the boundary touch offs and force outs on expressed dates . periodical payment on installment purchases atomic number 18 called annuity authorized since the payment starts on a definite date and await regularly until the put out payment . There ar triad types of simple annuity namely : ordinary annuity , annuity cod , and deferred annuityOrdinary annuity is one whose periodic payments are compensable at the shutdown of each payment interval . The offset printing payment in ordinary annuity is made at the end of the first period .

annuity due , on the opposite hand is an annuity whose payments are due at the inauguration of each payment period The first payment is due immediately at the theme of the first period . lastly , deferred annuity s first payment is deferred or postponed , and is to start at some future dateContingent annuity is one whose term depends on some uncertain events numerous life indemnity policies are examples of contingent annuity . The recompense of life indemnification policies much fund annuities . Policy holders of insurance or companionable credential may be give from the funds that were formal for their win on the deaths or other(a) claims of other polity ownersReference Smith , J , Skousen , K .F , Stice , E Stice , J (1998 . Annuity ordinary accounting (p 248 . South WesternPAGEPAGE 3ANNUITIES Page...If you destiny to get a just essay, order it on our website: Ordercustompaper.com

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