NYATIUN
Hint: Fixed sum of money paid annually for a given term
Answer: ANNUITY. An annuity is a series of equal payments at regular intervals.
Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities are classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other interval of time.
An annuity which provides for payments for the remainder of a person's lifetime is a life annuity.
Guess the Word, 15th September, 2016
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This article has been shared by Priti Saraf. Though a CA by profession, teaching is her passion. She suggests this joyful way of building English Grammar and wherein one cam simultaneously learn their practical use as well.
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