Annuity in Advance

Definition

• An arrangement where payments are made at the beginning of each period instead of at the end. An example of an annuity in advance would be rent payments, which are paid in advance for the upcoming month. Also known as "annuity due."

Synonyms
advance, money given beforehand, up-front annuities

Related Terms and Acronyms

• Annuity — Definition,
  • A financial instrument that disperses a number of payments over a set period of time.
  • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
• Annuity in Arrears — Definition,
  • When payments are made at the end of a period as opposed to the start.