ECPV0301IN ECPV0301IN

Math

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1. In your own words, how does Simple Annuities differ from General Annuities? 2. Give 3 real-life examples of where Annuities are applied.

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SINAINGMOIN SINAINGMOIN

Answer:

1.Simple annuity differentiates from general annuity by where the payment interval is the selfsame as the interest period whilst in general annuity, the payment interval is disparate as the interest period.

2.Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments.

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