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Annuities



Annuities              
A series of equal payments or receipts occurring over a specified number of periods. Payments are classified by the frequency of payment dates and they may be weekly, monthly, quarterly or yearly.
There are two types of annuity

1)    Ordinary Annuity
An annuity whose payments are made at the end of each period (e.g. a month, a year)

2)    Annuity Due
An annuity whose payments are made at the beginning of each period.
Examples include deposits in savings, insurance premiums and rent or lease payments

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