Annuity (Financial Mathematics)

An annuity is a series of payments, deposits or withdrawals, generally the same, which are conducted at regular intervals of time, with compound interest. The name of annuity income does not mean that have to be annual, but is given to any sequence of payments, equal in all cases, at regular intervals, regardless of whether such payments are annual, semiannual, quarterly or monthly.
When a country has on economic stability, it is common for commercial transactions are made through periodic payments, either simple or compound interest, such as annuities.
When the assessments to be delivered are destined to form a capital , are called taxation or funds, and if delivered to settle a debt , called amortization.
Annuities are familiar in everyday life, such as rents, salaries, social insurance payments, installment payments and mortgages, life insurance premiums, pensions, payments to sinking funds, leases, pensions and others, but among those are different forms and many differences.
However, the type of annuity is referred to the investment annuity, including compound interest, as in other types of annuity interest is not involved.