Annuity In Arrears

AAA

DEFINITION of 'Annuity In Arrears'

An annuity that has periodic payments of either interest and/or principal that must be paid at the end of a set period of time. An annuity in arrears is one of the most common forms of annuities. They are also known as ordinary annuities.

INVESTOPEDIA EXPLAINS 'Annuity In Arrears'

Annuities in arrears are not marketed as such by most annuity carriers, but they do exist nonetheless. They get their name from the fact that the first full annuity payment is not due until the end of the first term. For example, an annuity that pays out a combination of interest and principal one month from the start of the payment period is an annuity in arrears.

RELATED TERMS
  1. Annuity Ladder

    An investment strategy for retirees or near-retirees that entails ...
  2. Annuity

    A financial product sold by financial institutions that is designed ...
  3. Distribution

    1. When trading volume is higher than that of the previous day ...
  4. Annuitization

    The process of converting an annuity investment into a series ...
  5. Income Annuity

    Annuities designed to start paying income as soon as the policy ...
  6. Interest-Crediting Methods

    A credit method that determines how interest changes to a fixed ...
Related Articles
  1. Watch Your Back In The Annuity Game
    Home & Auto

    Watch Your Back In The Annuity Game

  2. Immediate Annuities: More Income and ...
    Retirement

    Immediate Annuities: More Income and ...

  3. Calculating The Present And Future Value ...
    Investing Basics

    Calculating The Present And Future Value ...

  4. An Overview Of Annuities
    Home & Auto

    An Overview Of Annuities

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center