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Annuities by Group 1 : Aziem, Adawiyah, Asyirin, Ilhami - Coggle Diagram
Annuities by Group 1 : Aziem, Adawiyah, Asyirin, Ilhami
Definition
Annuity is a series of payments or cash receipts in equal amount made at equal intervals of time for certain period. Annuities are used in business and commerce.Example: car purchase payments, house rent payments and so on.
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Types of annuities
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immediate annuity
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an annuity is a series of periodic, payments or deposits made at certain intervals
Examples of annuities are premium or insurance payments, house rent payments, payments installment due to purchase hire purchase and so on
Calculation of annuity is different from calculation of compound interest because annuities involve periodic payments of interest compound is calculated on one principal amount only
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