Discussion Post: Time Value of Money
Describe the differences between perpetuities and annuities. Give examples of both types of products.
o What information on the first Web site could be the most applicable to a consumer or investor?
o What information on the second Web site could be the most applicable to a consumer or investor?
o Find 1 example of a perpetuity. How is the perpetuity structured? How can you tell that this is an annuity within the product? Explain your answer.
o Find 1 example of an annuity. How is the annuity structured? How can you tell that this is a perpetuity within the product? Explain your answer.
o Why would an investor prefer one product over the other? Explain your answer.
o How does the time value of money impact the eventual returns of both products?
o If the investor had a short life expectancy, which investment would he or she prefer?
o If the investor had a long life expectancy, which investment would he or she prefer?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.