Equivalent annual annuity

Equivalent annual annuity

The amount per year for some number of years that has a present value equal to a given amount.

Equivalent Annual Annuity

The amount one would receive annually, over a certain number of years, from an annuity that has a present value equal to some stated amount.
References in periodicals archive ?
Berk, DeMarzo and Harford (2009) call the method the Equivalent Annual Annuity (EAA) which is essentially a simpler version of the former.