annuity

an·nu·ity

noun \ə-ˈnü-ə-tē, -ˈnyü-\

plural an·nu·ities

Definition of ANNUITY

1

: a sum of money payable yearly or at other regular intervals

2

: the right to receive an annuity

3

: a contract or agreement providing for the payment of an annuity

Examples of ANNUITY

1. Part of her retirement income will come from an annuity.
2. <his grandfather's will provided him with an annuity of $5,000 a year to be used for school expenses>

Origin of ANNUITY

Middle English annuite, from Anglo-French annuité, from Medieval Latin annuitat-, annuitas, from Latin annuus yearly

First Known Use: 15th century

Related to ANNUITY

Synonyms

allocation, allotment, appropriation, entitlement, grant, subsidy, subvention

Related Words

aid, assistance, block grant, grant-in-aid, set-aside; foreign aid, relief, state aid; advance, allowance, benefit, bequest, endowment, fund, legacy, stipend, trust, trust fund

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

Rhymes with ANNUITY

acuity, circuity, congruity, fatuity, gratuity, tenuity, vacuity

annuity

noun    (Concise Encyclopedia)

Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Under an annuity certain, a specified number of payments are made, after which the annuity stops. With a contingent annuity, each payment depends on the continuance of a given status; for example, a life annuity continues only as long as the recipient survives. Contingent annuities such as pension plans or life insurance depend on shared risk. Everyone pays in a fixed amount until the annuity begins; some will not live long enough to receive back all the money they have paid, while others will live long enough to collect more than they have paid.