What is a series of payments called?

What is a series of payments called?

An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities may be calculated by mathematical functions known as “annuity functions”.

What do you call a sequence of payments made at equal time periods?

A sequence of equal payments made at equal periods of time is called an annuity.

What is the difference between a series of payments and an annuity?

An annuity is a series of payments of equal size at equal intervals. So, a series of payments can be an annuity but not all series of payments are annuities. If the series of payments is of different values or at different intervals, it is not an annuity.

What type of payment system is described in the text as a fixed payment made at regular intervals such as every week or every month?

Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than 1 year (such as for 15 years or for life). These payments are also known as amounts received as an annuity.

Is a sequence of payments made at equal fixed intervals?

A series of payments made at equal intervals of time is called an annuity. An annuity where payments are guaranteed to occur for a fixed period of time.

Is a series of equal payments or receipts occurring over a specified number of periods?

Annuity: A series of equal payments or receipts occurring over a specified number of periods. Ordinary annuity: A series of equal payments or receipts occurring over a specified number of periods with the payments or receipts occurring at the end of each period.

What are the two specific characteristics of a series of payments that make them an annuity?

The account holder either makes a lump sum payment or a series of payments into the annuity and can either receive an immediate stream of income or defer receiving payments until some time in the future, usually after an accumulation period where the account earns interest tax-deferred.

What do you mean by fixed payments in annuity?

Essentially, an annuity is a series of fixed payments, usually made monthly over a certain period of time. Grainger added that the seller could also be entitled to other fixed payments if certain land valuation targets are met and a further profit share entitlement reduced by the amount of fixed payments received.

What are the different types of payment terms?

Two types of payment terms are available: Payment Term Description Standard Standard payment terms enable you to: Sp Advanced Advanced payment terms provide all the f

What kind of annuity is a series of cash flows?

There is also a special kind of annuity called a perpetuityAn infinite annuity; a stream of periodic cash flows that continues indefinitely., which is an annuity that goes on forever (i.e., a series of cash flows of equal amounts occurring at regular intervals that never ends).

What should be included in advanced payment terms?

Advanced payment terms provide all the features of standard payment terms, but also enable you to: Specify a calendar and work day rule to use in conjunction with the due date. Specify a based-on date other than the invoice date, such as the GL date or service/tax date.