An annuity is a financial institution that is designed to accept and grow funds from an individual and then, upon annuitization, pays out a stream of payments to the individual at a later point in time. Suppose, we want to make a payment of Tk.5000 each year for 10 years to an account that earns 6 percent interest, compounded annually, and we want to calculate the total amount which will be in the account after 10 payments. This series of periodic payments is called an annuity.
Lecture on Basic Annuity
