What is Annuity kind of cash flow? Its a question from the book Financial Management.

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An annuity is a special kind of cash flow, a special pattern of cash flow.  In an annuity, the person who is the beneficiary gets a certain amount of money per year for a given...

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An annuity is a special kind of cash flow, a special pattern of cash flow.  In an annuity, the person who is the beneficiary gets a certain amount of money per year for a given period of time.  This means that the person has a guaranteed cash flow for that time period.

Typically, an annuity is used as a way of financing a person's retirement.

In financial management texts, formulas for calculating the values of annuities are typically included.  The formulas can tell you, for example, how much you must invest on a yearly basis to assure yourself of a given amount of cash flow from an annuity.

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