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The payment period is the length of time between payments. Payments are usually made annually, semiannually, quarterly, or monthly. The term of the annuity is the length of time from the beginning of the first payment period to the end of the last payment period. The amount of the annuity is the sum of all payments plus their accumulated interest. Their amount is also called the cash value.
The amount of an annuity can be found by using the Amount of an Annuity table. The table lists the value of an annuity of $1 compounded at various rates for various time periods. To find the amount of an ordinary annuity using the annuity table, multiply the payment by the appropriate table value...
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