Ordinary annuity
Certified Financial Planner glossary · Certified Financial Planner
Definition
An annuity with payments at the end of each period. Contrast with annuity due, which pays at the beginning.
Ordinary annuity in plain English
Your calculator sits in Begin mode and the present value of a retirement paycheck looks oddly rich. An ordinary annuity pays at the end of each period; an annuity due pays at the beginning. That single setting changes present and future values materially on every TVM drill. Ordinary annuity is the end-of-period pattern in many textbook problems, so flip Begin/End deliberately, match the stem's payment timing, and do not treat the modes as interchangeable.
Practice Ordinary annuity
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