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Q: What is the process of converting an annuity's accumulated value into periodic income?
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Accumulated depreciation and depreciation expense?

Using accumulated depreciation and depreciation expense is a way that businesses can realize the true value of assets. A piece of equipment, for example, is devalued every year by the process of amortizing the asset. This in turn is recorded as depreciation and depreciation expense.


In a defined-benefit plan the process of funding refers to?

making the periodic contributions to a funding agency to ensure that funds are available to meet retirees' claims.


How can bank afford to pay interest on your saving?

Basically, it is about the savings-investment process. The accumulated fund from individual savers are used by the bank on their other financial services which is called loan. In essence, they generate interest from loan and they pay interest on individuals' savings.


What is liquid debt?

Quite simply, it is money owed, typically a short term cash loan, that must be repaid in a very short period.


What are the processes associated with bank lending?

At a very high level, the following five (5) processes are associated with making a loan: * Application Process (prospective borrower fills out application and makes available all information necessary to underwrite the loan) * Underwriting Process (the lender takes consumer-provided and externally-supplied data in order to make a lending decision) * Funding Process (the lender and borrower sign the loan contract/note and the funds associated with the loan are released to the borrower) * Servicing Process (the lender provides periodic statements and information to the borrower and the borrower makes timely periodic payments on the loan) * Payoff Process (the borrower makes the last/a final payment on the loan and the lender closes the contract)