annuity
UK[əˈnjuː.ə.ti]US[əˈnuː.ə.t̬i]
n
a fixed sum of money paid to someone each year, typically for the rest of their life.
n
a form of insurance or investment entitling the investor to a series of annual sums.
Morpheme Breakdown
annu
ity
annu
year
ity
noun suffix
Etymology
the word 'annuity' has a clear financial logic rooted in the concept of annual payment. it derives from the medieval latin 'annuitās', meaning 'a yearly sum', which itself originates from the latin 'annuus' (yearly), a derivative of 'annus' (year). the suffix '-ity', from latin '-itas', transforms the adjective into a noun denoting a state or condition. thus, the term literally means 'the condition of being yearly', which perfectly describes the periodic, annual nature of the payments, a concept that has been central to pensions and insurance since the roman era.
Analysis
Structure: annu (year) + ity (noun suffix)
annu (from latin 'annus', meaning 'year'); ity (a noun-forming suffix from latin '-itas', indicating a state or condition).
Examples
he purchased an annuity to provide a steady income after retirement.
the lottery winner chose to receive the prize as a 20-year annuity.
the value of an annuity depends on interest rates and life expectancy.