DELAYED ANNUITY

It is an annuity wherein the payment will be paid at a later date in the future. It is similar to the regular annuity that consists of a stream cash flows that is provided by some annuity holders. However, cash payments do not begin to flow immediately, instead following a predetermined future schedule. If Steve was to receive five yearly payments of $100 at the end of each year starting this year, then this payout would be considered an ordinary annuity.