Immediate annuity is annuity paid in arrear ?

[Duc Thinh Vu]

I want to know whether immediate annuity is the annuity paid in arrear or not.
In the CT1 notes provided by ActEd, they use these 2 terms interchangeably. However, as definition, the immediate annuity is the annuity that the first payment is made during the first time period.
Here I attached an image from Acted CT1 notes for further information.
Thanks very much for any help.

[Image]

 

[Mark Mitchell]

I don't think we use those terms interchangeably.

As quoted above, an immediate annuity is any annuity where there is a payment made during the first time period. This payment could be at the start of the first time period (giving an annuity-due), at the end of the time period (giving an annuity in arrears) or continuously over the time period (giving a continuously-payable annuity).

So an annuity-due, an annuity in arrears and a continuously-payable annuity are all examples of an immediate annuity.

 

[Duc Thinh Vu]

I don't think we use those terms interchangeably.

As quoted above, an immediate annuity is any annuity where there is a payment made during the first time period. This payment could be at the start of the first time period (giving an annuity-due), at the end of the time period (giving an annuity in arrears) or continuously over the time period (giving a continuously-payable annuity).

So an annuity-due, an annuity in arrears and a continuously-payable annuity are all examples of an immediate annuity.

Here is a screenshot of the CT1 notes. I think that instead of saying "immediate annuity" as shown in the screenshot, we should say "annuity paid in arrear".

 

[deepakraomore]

Generic types of payments.
1) Immediate
2) deferred
Sub types in above
Due(in advance) or arrears
So immediate can be in advance or in arrears and same for deferred