Simple Definition of annuity
: a fixed amount of money that is paid to someone each year
: an insurance policy or an investment that pays someone a fixed amount of money each year
Full 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
Part of her retirement income will come from an annuity.
<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
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