Annuity In Arrears

Annuity in Arrears. Definition: that hankering for lost toilet paper...ya knew it was in da rear, but just couldn’t see it. (Get it? Annuity in Arrears...ya knew it was in da rear...ugh, witty word play is wasted on you...don't buy any Nabokov novels...)

Anyway, let’s get real for a minute. Like annuity in advance, annuity in arrears (aka ordinary annuity) refers to regular payments that you hate to shell out. But these payments occur at the end of a specified time frame (like the end of the month or the end of a quarter). In the example of rent, this would mean that you pay November rent on December first. You’re paying AFTER the fact. (If you pay before the fact, that’s annuity in advance.)