Definition of: annuity

(ə·n′ə·tē, ə·ny′-) noun plural ·ties
1. An annual allowance or income; also, the right to receive such an allowance or the duty of paying it.
2. The return from an investment of capital, with interest, in a series of yearly payments; especially, an agreed amount paid by an insurance company at stated intervals, usually monthly, in consideration of either a single premium or premiums paid over a period of years. [ < F annuité < Med.L annuitas, -tatis < L annus year]