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".
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.