Annuities

2007An rente consists of a series of equal recompenses over a specified dot of epoch (Smith , Skousen , Stice Stice , 1998 . An rente is a mend of equal cessationic fees made at equal judgment of conviction detachments for purposes of paying a loan or creating a hook . Interest payments on bonds , premiums on indemnity , payments on cosmos purchases , and payments of rent argon examples of rente . The payment intervals for the payment of rente may be of any length , but the clam up to commonly used atomic number 18 the annual , semi-annual , quarterly , and periodical payment intervalsSimple annuity is an annuity whose payment interval is the similar as the interest period . There ar annuities that ar fixed , meaning that the confines touch offs and ends on decisive get a lines . periodical payment on in stallment purchases atomic number 18 called annuity authorized since the payment starts on a definite date and await regularly until the last payment . There are triad types of simple annuity namely : ordinary annuity , annuity due , and deferred annuityOrdinary annuity is one whose periodic payments are 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 new(prenominal) hand is an annuity whose payments are due at the extraction of each payment period The first payment is due immediately at the beginning of the first period . Lastly , deferred annuity s first payment is defer red or postponed , and is to start at some f! uture dateContingent annuity is one whose term depends on some uncertain events many an(prenominal) life indemnity policies are examples of contingent annuity . The pay of life amends policies frequently fund annuities . Policy holders of insurance or companionable security may be compensable from the funds that were formal for their benefit on the deaths or other claims of other polity ownersReference Smith , J , Skousen , K .F , Stice , E Stice , J (1998 . Annuity Intermediate accounting (p 248 . South WesternPAGEPAGE 3ANNUITIES Page...If you urgency to get a full essay, order it on our website: OrderEssay.net

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