BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Annuity is defined as a certain sum of money paid in equal intervals. That means that a company would be paying you a certain amount of money that you will receive either lump-sum or over a regular period of time.

Detailed explanation-2: -Definition of an Annuity An annuity is a series of equal cash flows, or payments, made at regular intervals (e.g., monthly or annually). The payments must be equal, and the interval between payments must be regular.

Detailed explanation-3: -The term of the annuity is the time from the beginning of the first payment interval to the end of the last payment interval. A payment interval is the time between successive payments.

Detailed explanation-4: -An Ordinary annuity is a fixed payment made at the end of equal intervals (Semi-annually, Quarterly or monthly), which is mostly used to calculate the present value of fixed payment paying securities like Bonds, Preferred shares, pension schemes, etc.