With a payout annuity, you start with money in the account, and pull money out of the account on a regular basis. Payout annuities assume that you take money from the account on a regular schedule (ev...With a payout annuity, you start with money in the account, and pull money out of the account on a regular basis. Payout annuities assume that you take money from the account on a regular schedule (every month, year, quarter, etc.) and let the rest sit there earning interest. You want to be able to take monthly withdrawals from the account for a total of 30 years. A donor gives $100,000 to a university, and specifies that it is to be used to give annual scholarships for the next 20 years.
