 Hello and welcome to the session. In this session, first of all let us give an introduction of annuities. Now in today's life a number of transactions take place like sale and purchase of goods such as cars, washing machines, lands etc. Some of these things are very expensive but it is not possible to pay the total cost at once. Therefore payments are made in installments over a period of time. Now the installments are calculated in such a way that the seller is fully compensated by his waiting time by paying interest calculated compoundedly. Therefore annuities can be defined as a sequence of fixed equal payments made over uniform time intervals full intervals of time with compound interest on these payments. Now these intervals may be a year, half year, a month, three what is a payment period. Now a payment period can be defined as the time between sequence of payment is made on first then it is an annuity with payment period of one month. Now let us discuss what is a term or duration of an annuity. Now the total time on the beginning of the last payment put the term or duration of an annuity. Now let us see who is an annuitant. Now the person the annuity is called annuitant. Now let us see what is an installment. Now the installment is defined in what is a cessation period. The time that intervenes between the payment installments annuity is called its cessation period. Now let us discuss types of annuities. Now there are three types of annuities. First is annuity certain. An annuity certain is an annuity which begins fixed dates and the payments fixed number of intervals. Now bank gathering deposits are the example of annuity certain and the second type of annuity is annuity contingent. Now in annuity contingent payments are made that have links of an event such as death of a person, marriage of a girl etc. Now in this case the term of an annuity is unsurpassed for an indefinite number of years. For example life insurance premium. Now the next type of annuity is perpetual annuity or perpetuity. Now it is an annuity whose payments continue the end of the periods. Payments are made when it is called an ordinary perpetuity and if at the beginning of the periods the payments are made then it is called perpetuity too. So as the term of this annuity is infinite therefore the beginning date of perpetual annuity is known not the terminal date. For example endowment fund to give scholarships to multiple students every year in a board examination is a perpetual annuity. Now let us discuss the classes of annuity certain. On the basis of payment date annuities certain are classified into three classes annuity too. Now if the payments and installments are made in the beginning each period the annuity is called an annuity too. For example recurring deposits, life insurance premium payments etc. Now the second type is ordinary annuity or immediate annuity. Now in this type of annuity a series of payments or equal value is made each period. For example a personal loan from a bank. Now next let us discuss deferred annuity. Now if the first payment is postponed or deferred the expiration of a period of time to a certain number of then annuity is called deferred annuity. This also called reversion in this case the term begins after the expiry of certain period called the deferment period. For example the pension plan of life insurance corporation of India. So in this session you have learnt about annuities, types of annuities and classes of annuity certain. So this completes our session. Hope you all have enjoyed the session.