# ordinary annuity

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Related to ordinary annuity: Annuity due
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 Noun 1 ordinary annuity - an annuity paid in a series of more or less equal payments at the end of equally spaced periodsannuity, rente - income from capital investment paid in a series of regular payments; "his retirement fund was set up to be paid as an annuity"
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A An ordinary annuity is like that old advert, "it does exactly what it says on the tin".
Example: Calculate the present value of a series of \$2,000 annual payments to be made at the end of each year for the next four years, assuming a discount rate of 5% (an ordinary annuity is a series of equal payments made at the end of each period).
SOLUTION: Go to Appendix C, Present Value of an Ordinary Annuity Table.
The present value of a level ordinary annuity can also be calculated using the tables for the present value of an ordinary annuity contained in Appendix C.
Thus, we can then compute the probability that an individual will have a higher income from a GSA plan than from an ordinary annuity.
Once the annual PASS payment is determined, the transferor's income taxation of the payment is divided into three components: capital gain, non-taxable recovery of stock basis and ordinary annuity income.
Computing the present value is easily expressed as the sum of the present value of the maturity principal value of \$ 100,000 and the present value of an ordinary annuity of the interest payments remaining until maturity after the interest is paid on February 15, 2014.
ANNUITY BENEFITS PAID IN 2005 totaled about \$50 billion in 2005, with ordinary annuity benefits paid contributing a little less than half of that total, according to annual statement filings.

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