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 slice of equal mensesic salarys made at equal quantify intervals for purposes of paying a loan or creating a graze . Interest payments on bonds , premiums on indemnity , payments on substructure purchases , and payments of rent argon examples of rente . The payment intervals for the payment of annuity may be of any length , but the virtually to commonly used atomic number 18 the annual , semi-annual , quarterly , and monthly payment intervalsSimple annuity is an annuity whose payment interval is the equivalent as the interest period . There atomic number 18 annuities that argon fixed , meaning that the confines touch offs and ends on certain(prenominal) betrothals . peri odical payment on installment purchases are 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 other hand is an annuity whose payments are due at the spring of each payment period The first payment is due immediately at the beginning 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 numerous life indemnity policies are examples of contingent annuity . The dough of life insurance policy policies frequently fund annuities . Policy holders of insurance or com panionable security may be give from the fu! nds 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 sine qua non to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay