Annuity in arrears,
Definition of Annuity in arrears:
Annuity in arrears—a legal, accounting and actuarial term—is also known as an "ordinary annuity." The opposite of an annuity in arrears is known as an "annuity in advance" or "annuity due.".
Annuity in arrears refers to the payment of an equal amount of money that is made at the end of a regular term. It does not refer to an annuity product, per se, but instead refers to a payment structure that an annuity might employ. A common example of an annuity in arrears is a mortgage payment.
Periodic payments (such as interest) that are due at the end of a period. Also called ordinary annuity. See also annuity in advance.
How to use Annuity in arrears in a sentence?
- The present value of annuity-in-arrears payments is lower than annuity in advance or annuity due payments.
- This payment could be interest or mortgage, or another recurring payment.
- An annuity in arrears is the payment of money made at the end of a regular term.
Meaning of Annuity in arrears & Annuity in arrears Definition