Annuities

An annuity is for a particular sum fixed in advance received periodically (eg monthly or annually) for a period determined in advance (certain annuity) or possibly for the rest of his life (annuity lifetime), from the heritage of that individual. An annuity is also defined more broadly as income from assets.

In economics, this is a central concept (linked to profit) but which has many definitions depending on the author. Approximately, an additional benefit is that an economic agent can get over its competitors because its production costs are lower for a sale price of identical, or because it is able to get a higher selling prices.

In finance, this is a perpetual issue (without repayment of capital, but with regular interest payments and fixed) issued by a State, constituting a source of income for an individual. If the annuity is payable at period end, it is postnumerando, if payable at beginning of period, it is praenumerando. As for the payment period, the annuity is for life when she is always paid, knows no end, while a temporary annuity is paid for a specified period.

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