A series of scheduled payments (e.g., each month). Each payment is usually the same amount as each of the other payments in the annuity.
An annuity can take on a few different forms. For example, you might receive cash from an investment in the form of an annuity. Retirement plans often involve annuities where you receive equal, steady payments over a number of years.
The concept of annuity applies to mortgages, certain types of insurance products, income received from bonds, and pension plans.
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