An annuity can be a useful tool when planning for retirement. After you’ve stopped working, you’ll be relying on your savings and Social Security payments to support yourself and enjoy your golden ...

Image source: Flickr user Ken Funakoshi. A perpetual annuity, also called a perpetuity, promises to pay a certain amount of money to its owner forever. A classic example would be that of a perpetual ...

An annuity is an insurance contract you purchase to receive payments for a specific period, such as 30 years, or for the rest of your life. By applying a mathematical formula consisting of variables ...

Annuities can help you plan for your retirement by providing a guaranteed source of income for you and your family when you reach your golden years. They aren’t the simplest of investments, though, ...

In the world of finance, an annuity is a contract between you and a life insurance company in which you give the company a lump sum or series of payments, and in return, the insurer promises to ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Ordinary annuities pay at the end of a period. Annuities due pay in advance or at the beginning of a period. Because of the difference in payment timing, the present value of an annuity due will be ...

The time value of money sounds like one of those boring economic concepts that a small business owner doesn't have time for – but that would be wrong. Future value and present value are monetary ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...