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Glite Dictionary
ordinary annuity

ordinary annuity

6.2
A series of equal payments made at the end of each period for a set time
  • noun
  • /ˈɔrdəˌnɛri əˈnuːɪti/
  • Specialized
translation icon : renta ordinaria
  • Understanding the concept of an ordinary annuity is essential for evaluating long-term investment strategies.

Examples

  • To some extent, the inclusion of firm fixed effects should control for some of these unobservable factors. For the purpose of this study, individual-focused lines include the following: (1) ordinary life insurance, (2) ordinary annuities, and (3) ordinary supplementary contracts.

    Academic text (2016)

  • An ordinary annuity provides equal payments at the end of each period over a specified term.

  • Investors often use an ordinary annuity to calculate their future financial returns based on consistent payments.

Synonyms

annuity
vsordinary annuity
  • Specialized
21 7.4

A regular fixed payment of money made to someone, often every year for life

is the specific case with equal payments made at each period's end

Surface Forms

ordinary annuity singular
ordinary annuities plural

Morphology

ordinary + annuity

The noun 'annuity' (periodic payment) combined with 'ordinary' (usual/standard) yields a general sense of a standard or regular annuity, so learners who know both words can infer it concerns regular payments. However, the precise technical meaning — that payments occur specifically at the end of each period (as opposed to an 'annuity due') — is a domain-specific convention not predictable from the ordinary sense of 'ordinary.' Therefore the expression is only partially transparent to a B1 learner without financial knowledge.

Etymology

Ordinary annuity paints a simple money picture: ordinary means regular and annuity means a repeated payment, with each payment happening at the 'end of each period'. So an ordinary annuity is a series of equal payments made at the end of every month or year.