Ordinary Annuity Law and Legal Definition

Ordinary annuity means a series of fixed payments made at the end of each pay period, rather than at the beginning of a period. It can be calculated by using an annuity calculator and by taking into account the initial principal balance, interest rate received, and length of the payment schedule period. Examples of ordinary annuity include straight bond coupon payments and mortgage loans. Generally, ordinary annuity is used as an alternative term for annuity in arrears.