What is referred to as fixed sum of money paid to someone at regular intervals?

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

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This is a 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 depend on shared risk. Everyone pays in until the annuity begins; some will live long enough to collect more than they have paid, while others will not live long enough to get back the money they invested.

Synonyms

Example Sentences

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

Recent Examples on the Web At current interest rates, an immediate annuity would pay the couple about $2,600 a month, versus $2,150 for the pension. —Anne Tergesen, WSJ, 31 Oct. 2022 Mega Millions winners have 12 months from the date of the drawing the claim their prize but only 60 days to choose an annual annuity paid over 29 years or the $780.5 million cash option. —Leada Gore | , al, 29 Aug. 2022 The winner also has the option of receiving the full amount as an annuity paid over 29 years, but no one has taken that offer since 2014. —Miles Klee, Rolling Stone, 8 Nov. 2022 Jackpot winners can get their prize as an annuity paid out over 29 years or as a lump sum payment. —Khristopher J. Brooks, CBS News, 3 Nov. 2022 Jackpot winners may choose to receive their prize as an annuity, paid in 30 payments over 39 years, or as a lump sum payment. —Bynadine El-bawab, ABC News, 29 Oct. 2022 As an annuity, the maximum Social Security benefit without any COLA would be worth at least $665,000 and as much as $909,000. —Jeff Sommer, New York Times, 14 Oct. 2022 The first decision would be whether to take the winnings as an annuity with 30 payments over 29 years – something that spreads the tax bill out for that time period – or chose an immediate but reduced lump cash sum. —Leada Gore | , al, 28 July 2022 But almost no winners take the annuity, instead opting for cash. —Fortune, 7 Nov. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'annuity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Word History

Etymology

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

First Known Use

15th century, in the meaning defined at sense 1

Time Traveler

The first known use of annuity was in the 15th century

Dictionary Entries Near annuity

Cite this Entry

“Annuity.” Merriam-Webster.com Dictionary, Merriam-Webster, //www.merriam-webster.com/dictionary/annuity. Accessed 17 Dec. 2022.

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Last Updated: 16 Dec 2022 - Updated example sentences

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Merriam-Webster unabridged

What is referred to a fixed sum of the money paid to someone at regular intervals subject to a fix compound interest rate?

Which of the following refers to the sum of money paid to someone?

When a fixed sum of money is paid at regular intervals of time especially a year each payment is called?