annuitets

Annuitets, in English commonly referred to as annuities, are financial arrangements that provide a series of equal payments at regular intervals over a defined period. The payments can begin immediately or after a deferral period and may be scheduled yearly, monthly, quarterly, or at other intervals. The concept is used in pensions, loans, and insurance products, and it appears in various legal and financial contexts in Scandinavian and other markets.

There are several key types of annuitets. An ordinary annuity (end-of-period payments) and an annuity due (payments at the beginning of each period) are the most common distinctions. In lending, an annuitetslån (annuity loan) refers to a loan with fixed, equal payments over the term, where each payment includes both interest on the outstanding balance and principal repayment. Over time the interest portion declines while the principal portion rises, yet the total payment remains constant.

Valuation of an annuitet involves time value of money. The present value of an ordinary annuity is PV = Pmt × [1 − (1 + i)^(-n)] / i, where Pmt is the payment, i is the periodic interest rate, and n is the number of payments. The future value is FV = Pmt × [((1 + i)^n − 1) / i]. For an annuity due, multiply the ordinary annuity value by (1 + i).

Applications include retirement planning, mortgage amortization, and insurance products that guarantee periodic payments. Annuitets provide predictable cash flows but their value depends on interest rates and the chosen payment schedule.