Structured Settlement Annuity Additional Resources - Page 4




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* Did You Know?
  • Compounding - to compute interest on the principal and accrued interest together, rather than on the principal alone.
  • Immediate annuity - an insurance policy which makes a series of either equal or varying periodical payments annually, or more frequently for a fixed term of years.
  • Time value of money TVM - also called the discounted present value, is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else being equal. Refers to effects of interest over time.
  • Compound interest - interest which is regularly added to the debt (called compounding) and is calculated over the principal PLUS over the interest already accrued to the debt (over the total amount owed).
  • Equity indexed annuity - annuity policies that are a hybrid of a deferred annuity and a fixed deferred annuity.

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