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annuity means the contract between a individual and insurer, where a individual makes payment some premium at the time of accumulation period to the insurer.

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ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period

In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.

ordinary annuity

An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period. *an annuity due of (n) periods is equal to an ordinary annuity of (n-1) periods plus the payment.

In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.

The simplest way is to gross up the ordinary annuity (payments in arrears) by a single period at the discounting rate. For example, if the ordinary annuity has semi-annual payments (half yearly) and the PV is $1000 using a discounting rate of 5% p.a., then the PV of the annuity due would be: PVDue= $1,000 x ( 1 + 5%/2 ) = $1,025

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An annuity is a series of equal cash flows over time that comes at regular intervals. The cash flows must be either all payments or all receipts, consistently occur either at the beginning or the end of the interval and represent one discount period. Payments made at the beginning of the period indicate an "annuity due" which can include rents and insurance payments. Payments at the end of the period indicate an "ordinary annuity" which include mortgage payments, bond payments, etc.Although loan payments, mortgages and similar financial instruments can be regarded as an annuity, the term is mostly applied from the perspective of being an asset. For example, payments from a lottery or distributions from a lump-sum amount can be considered as an annuity. Annuities can also be an investment used to guarantee a regular income during a retirement.Calculating annuity payments can come from two perspectives: the future value of an annuity or the present value of an annuity.Calculating Ordinary Annuity Payments From Future ValueIf the desired ending amount is known together with the discount rate and number of periods, the payments can be calculated as follows:PMT = FV / (((1 + r)^n - 1) / r)Where:PMT = Payment amount made at the end of the periodFV = The future value of the annuity (how much the balance will be after all payments have been made)r = the discount rate^ = raises the value to the left to an exponential number on the rightn = the number of paymentsIn this calculation, the present value (PV) is assumed to be zero.Calculating Ordinary Annuity Payments From Present ValueIf the sum of money or balance on hand is known together with the discount rate and the number of periods, the amount of payments to reduce the balance to zero can be calculated as follows:PMT = PV / ((1-[1 / (1 + r)^n] )/ r)Where:PMT = Payment amount made at the end of the periodPV = The present value of the annuity (how much is currently on hand)r = the discount rate^ = raises the value to the left to an exponential number on the rightn = the number of paymentsIn this calculation, the future value (FV) is assumed to be zero.Calculating Annuity Due Payments From Future ValueBecause the payment earns interest for one additional period than the ordinary annuity, the future value should be adjusted as follows:FV annuity due = FV ordinary annuity X (1+r)The new value for future value can now be inserted in the original equation to compute the annuity due payments.Calculating Annuity Due Payments From Present ValueTo remove the additional discount period for each payment made on an annuity due, the present value of the annuity must be adjusted as follows:PV annuity due = PV ordinary annuity X (1+r)The new value for future value can now be inserted in the original equation to compute the annuity due payments.Alternate MethodsBecause calculating the payments for ordinary annuities and annuities due, a financial calculator such as the HP 10bII can be used to simplify the process. When many calculations must be performed, the process can be expedited through the use of a spreadsheet such as Microsoft Excel which is equipped with time value of money functions.See the related links below for an annuity calculator for different types of contracts that compute the balance, distributions, or present value using the amounts you specify.

Check your policy for the factors.

An immediate annuity calculator will help determine your income when your annuity comes due. Find a reputable place to help plan your future. www.fidelity.com is a good place to reserach.

An annuity that will not begin until some time period in the future.A deferred annuity is an annuity in which the taxes due on any taxable portion is deferred until you start to withdraw from the annuity. It is a way of compounding interest on the money you would normally paid taxes on if not in a ta deferred annuity. In a way it is like using the government's money to make you money.

Not enough information is given. There are instances where a public emplyee's pension/annuity was forfeited due to their criminal activity. However, regarding a private retirement/annuity, I am not so certain.

The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.

a)Name of amount due b)demand of repayment

That should be possible.

Fixed Annuity Calculator A Fixed Annuity can provide a very secure, tax-deferred investment. It can provide a guaranteed minimum interest rate, with no taxes due on any earnings until they are withdrawn from the account. Use this calculator to help you determine how a Fixed Annuity might fit into your retirement plan.

A Fixed Annuity can provide a very secure, tax deferred investment. It can provide a guaranteed minimum interest rate, with no taxes due on any earnings until they are withdrawn from the account. Use this annuity calculator to help you determine how a Fixed Annuity might fit into your retirement plan.

No GMIB charges on annuities are not tax deductible. However,a GMIB annuity is tax-deferred so the taxes will not be due on any money until after it is withdrawn.

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This is a complicated area so the following information is general only. You should speak with a tax expert and a representative from the insurance company before you make any decisions regarding this inheritance.The value of the annuity at the date of death is included in the estate for tax purposes. The estate would pay any inheritance tax.Once an inherited annuity is distributed to the beneficiary by the insurance company, either a lump sum distribution or a new annuity with you as the owner, ordinary income taxwill become due on the growth of the annuity from the time the annuitant/decedent made the initial investment. Most annuities are tax deferred. When they are inherited, you inherit all the tax liability that was deferred over the years by the owner of the annuity.You should discuss the inheritance with the insurance company. It can explain your options and ways you can minimize your tax obligations. Any changes you make or any distribution will generate a 1099-R.

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Yes, it was cancelled due to low ratings.

Annuity settlement buyers offer you a lump sum in exchange for the future payments you are due to receive. Most of the time these companies offer a 50% - 60% lump sum of the total payments.

dew drop means due to evaporation water droplets will be formed and come to earth as dew. Guttation means water will come from plant.

It was cancelled due to low ratings.