Of marked Latin roots is the term of annuity that we now have before us. Specifically, we can establish that its etymological origin is the result of the sum of three components of said language:
-The noun “annus”, which can be translated as “season” or “year”.
-The suffix “-alis”, which is used to indicate “relative to”.
-The suffix “-dad”, which is the one used to establish a “quality”.
According to DigoPaul, annuity is a concept that alludes to the condition of annual: that extends for a year or that is reiterated every year. The notion is also used to name the annual amount that a certain monetary burden generates or represents.
The annuity, in this framework, can be a series of deposits or payments that take place in time intervals that follow each other regularly. Beyond what is specified by the concept itself, any sequence of payments in regular periods, even when they are not annual, is known as an annuity.
Based on all the above we find a varied series of types of annuities such as:
-Ordinary annuity. It is also known as a past due annuity and refers to the fact that the payment corresponding to a certain time is made at the end of it. Thus, for example, it can take place at the end of the month.
-Annuality advanced. Under this other term is that annuity that is called so when the corresponding payment is made at the beginning of what is the interval or period of time in question. In this way, it can be done at the beginning of the month, for example.
In addition to everything indicated we can expose that there are many types of annuities. Specifically, in order to classify them, different criteria can be used. However, among those more frequent criteria are the nature of the effective payment commitment, which is the tax status, the nature of the investment, the premium payment agreement or even the main purpose.
The depreciation and impositions are annuities. Salaries, mortgage payments, retirements, pensions, rents and insurance premiums may also be named.
The most common use of the term, however, is associated with the periodic economic movement that carries compound interests. In this context, the annuity is made up of the term (the extension), the payment period (how long separates one payment from the other), the rent (the deposit or periodic payment) and the annual rent (the sum of the payments to the over a year).
In the Roman Empire, the annuity governed the exercise of the different ordinary magistracies, with the exception of the dictator. Through the annuity it was established that the praetor, the consul, the mayor and other officials fulfilled their functions for a year. In this way, the Romans elected these magistrates each year, renewing the offices. Only in extraordinary situations could the mandate of praetors and consuls be extended.