Annuity in arrears

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Annuity in arrears

An annuity with a first payment one full period hence, rather than immediately.

Annuity in Arrears

A payment that is made at the end of a period. For example, one usually makes a monthly mortgage payment at the end of the month, when a certain amount of interest has had a chance to accumulate. An annuity in arrears often, but not always, refers a loan payment. It should not be confused with "in arrears," which describes a payment that is late.