CORNELL NOTES: Annuities

Essential Question: How can annuity help you in the future?

What is an Annuity? An Annuity is a sequence of equal payments (or deposits) made at a regular
interval of time.

What are the types of

annuity Annuity

According to Simple Annuity – an General

payment interval annuity where the Annuity – an
and interest period payment interval is annuity
the same as the where the
interest period payment
interval is not
the same as
the interest
period.
According to time Ordinary Annuity (Annuity
of payment Immediate) – a type of annuity in
which the payments are made at the
end of each payment interval

According to Annuity Certain – an annuity in which

duration payments begin and end at definite
times.
 Formulas in solving
future and present
value of an annuity

A DEFERRED ANNUITY is a kind of annuity whose payments (or deposits) start

in more than one period from the present.
What is the
difference between
Deferred Annuity and The time between the purchase of an annuity and the start of the payments
Period of Deferral? for the deferred annuity is called Period of Deferral.
 Formula in solving
present value of a
deferred annuity

What is the
importance of
annuities to real-life?

What is your overall

learning about the
whole topic in
annuities?

Summary
Please answer the
essential question.

“How can annuity

help you in the
future?”