Annuity In Arrears, also known as Ordinary Annuity, refers to a series of equal payments made at the end of consecutive periods over a fixed length of time. Commonly used in finance and real estate.
The Inwood Annuity Factor is a number used to determine the present value of a level-payment income stream, based on a specific interest rate, similar to the Ordinary Annuity Factor. It simplifies the calculation of the present value of periodic payments.
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