Annum

Annum (from Latin 'per annum') is a Latin term meaning 'by the year' or 'yearly.' It is used to express rates, quantities, or values on an annual basis. It signifies an amount that occurs, is calculated, or is applicable over a full twelve-month period. The term is frequently encountered in financial contexts like interest rates, salaries, and yields, as well as in scientific or statistical contexts involving recurring phenomena that are measured over a year, such as rainfall or the number of births. The significance is that it presents a standardized rate, providing a consistent basis for comparison regardless of the period in question, as it expresses the whole years amount.

Annum meaning with examples

• The investment offered a return of 5% per annum. This means that for every £100 invested, the investor would receive an additional £5 at the end of each year, if no investments were made within the year. This calculation makes it easy to quickly ascertain the earnings potential and compare with other investment choices on offer, thus demonstrating the per annum rate.
• The company's revenue increased by 10% per annum over the past five years. This financial metric signifies the average growth of the company's income on a year by year basis. Investors can assess how the company has performed over time. By stating 'per annum,' the annual increase is the normalized indicator, making the revenue trend clear.
• The average rainfall in the region is 1200 millimeters per annum. The measurement expresses an overall average of water in the region yearly, helping to illustrate the seasonal patterns and the availability of water resources. Farmers and others use this measurement to get a yearly estimate. It gives a baseline of comparison across different locations and across years.
• The salary offered for the position was £50,000 per annum. The stated yearly salary is the total compensation offered over the course of a year, rather than a monthly or a bi-weekly salary. The yearly pay provides clarity for job applicants about the compensation package, giving a single figure for comparative and budgeting purposes.