Annuity is financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Suppose, we want to make payment of Tk.5000 each year for 10 years to an account which earns 6 percent interest, compounded annually, and we want to calculate the total amount which will be in the account after 10 payments. This series of periodic payments is called an annuity.
