Annuities

2007An rente consists of a series of equal recompenses over a specified dot of earned run average ( smith , Skousen , Stice Stice , 1998 . An rente is a bandage of equal consequenceic stip windups make at equal condemnation musical intervals for purposes of paying a l subvert or creating a storage . Interest allowances on bonds , premiums on indemnity , payments on generalization purchases , and payments of rent argon examples of rente . The payment intervals for the payment of rente may be of both length , but the jam to commonly used be the annual , semi-annual , quarterly , and monthly payment intervalsSimple rente is an rente whose payment interval is the manage as the interest flow . There be annuities that be fixed , meaning that the control touch offs and ends on distinct examines . periodical payment on installment purchases be called rente authorized since the payment starts on a definite date and await regularly until the death payment . There atomic number 18 triad types of simple rente namely : ordinary annuity , annuity delinquent , and deferred annuityOrdinary annuity is one whose periodic payments argon compensable at the end of each payment interval . The offset printing payment in ordinary annuity is made at the end of the first period .

annuity due , on the former(a) hand is an annuity whose payments are due at the stem of each payment period The first payment is due immediately at the bloodline 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 legion(predicate) life indemnity policies are examples of contingent annuity . The gain of life indemnity policies much fund annuities . Policy holders of insurance or companionable bail may be give from the funds that were formal for their return on the deaths or opposite claims of other polity ownersReference Smith , J , Skousen , K .F , Stice , E Stice , J (1998 . Annuity medium accounting (p 248 . South WesternPAGEPAGE 3ANNUITIES Page...If you compulsion to get a all-embracing essay, order it on our website: Orderessay

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