Annuity in Arrears
- An arrangement where payments are made at the end of each period instead of at the beginning. An example of an annuity in arrears would be mortgage payments, which are paid to cover the previous period's principle and interest. Also known as an "ordinary annuity."
held in arrears, back payment, held-back annuities, postpone
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Annuity in Advance — Definition,
- When payments are made at the start of a period as opposed to the end.