Ordinary annuity
Ordinary annuity (alternatively known as deferred annuity) is an annuity with a fixed number of equal payments occurring at the end of each period.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Ordinary annuity (deferred annuity). An annuity with a fixed number of equal payments occurring at the end of each period.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Ordinary annuity (differed annuity). An annuity whose payments occur at the end of each period.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
