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Per Annum for Dummies

adverb

pronunciation: pər_'ænəm

What does Per Annum really mean?

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Per Annum is a term that we often hear, especially when dealing with financial matters. It might sound a bit complicated at first, but don't worry, I'm here to break it down for you in a way that will make it easier to understand. So, what does "Per Annum" actually mean?

Well, imagine you have a big jar filled with candy. Let's say there are 100 candies in total. Now, per annum is like looking at how many candies you can have each year. So, if you had to distribute those candies equally over a year, you will have about 8 candies each month. That's because there are 12 months in a year, and 100 divided by 12 equals around 8.3 candies per month.

Similarly, "Per Annum" is a Latin phrase that means "each year" or "every year." It is often used when talking about things that happen or are calculated on an annual basis. For example, if someone says, "I earn $50,000 per annum," it means that they make a total of $50,000 in a year.

Another way to understand "Per Annum" is by thinking about a tree. Imagine if a tree grows 10 centimeters every year. So, if you measure the height of the tree, you would say that it grows 10 centimeters per annum. This implies that every year, the tree gets 10 centimeters taller.

Per annum can also be applied to interest rates. Let's say you have some money in a savings account, and the bank will pay you an annual interest rate of 5%. This means that for every $100 you have in the account, the bank will give you an additional $5 per annum. So, the more money you have in the account, the more money you will earn each year.

In summary, "Per Annum" simply refers to something that happens or is calculated each year or every year. It can be used to describe how much money someone earns, how things grow or change annually, or even how interest is calculated. So, whenever you come across this term, just remember that it's all about what happens on a yearly basis!


Revised and Fact checked by Olivia Brown on 2023-10-29 19:49:58

Per Annum In a sentece

Learn how to use Per Annum inside a sentece

  • John earns $50,000 per annum, which means he receives $50,000 each year.
  • The rent for the apartment is $12,000 per annum, so the tenant pays $12,000 annually.
  • The company's profits increased by 10% per annum, indicating a 10% growth each year.
  • The interest rate on the loan is 5% per annum, resulting in a 5% annual cost.
  • The population of the town grows at a rate of 2% per annum, with 2% more people living there every year.

Per Annum Synonyms

Words that can be interchanged for the original word in the same context.

annually each year p.a. per year