Annuity & Amortization A Complete Series

Annuity is a system or a process of gradual equal or unequal installment payments into a particular account. It is also a habitual system of payments in any savings account. There are two major aspect of annuity;

• Increasing flow of annuity (Ordinary Annuity)

• Decreasing flow of annuity (Present Value Of Annuity)

The increasing flow of annuity is the annuity that tends to increase in the future while decreasing flow of annuity is the annuity that tends to reduce a given stream like debt settlement.

Amortization is a gradual settlement of loan by using a particular amount of money called the repayment value to set off the value of loan until the loan is fully settled.