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Annuities are payments (or cash flows) of equal amount every period for a limited number of periods. Examples of annuities are loan payments for your car and periodic payments from a lottery win.

Perpetuities on the other hand are payments (or cash flows) also of equal amounts that are made every period for an unlimited number of periods. Examples of perpetuities are property tax payments and preferred stocks.

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Q: What is the difference between an annuity and a perpetuity?
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An annuity with an infinite life is called a?

Perpetuity


What is the meaning of perpetual-annuity?

a perpetual annuity is an annuity that continues forever- it has an infinite life.That is every year from its establishment this investment pays the same dollar amount.An example of a perpetuity is the dividend stream on preference shares.


What is the difference between a pension and an annuity?

First of all, let's understand what the pension and annuity are. The pension is a consistent monthly income provided by Federal Govt. only to their employees after they retire. Usually, this income is half of the last salary received and is provided to an employee throughout their life. While an annuity is an investment where anyone can invest an amount of savings and receive a consistent monthly income throughout their retirement life. The major advantage of annuity over a pension is that pension isn't provided to each and every citizen while annuity is available for everyone. Moreover, the amount to be received isn't fixed by the Govt, but by the plan a customer chooses. if you are willing to know more about annuity insurance plans, you can visit our site: optinsure.com for the same.


What is a period certain annuity and a life annuity?

A period certain annuity is an annuity that pays out an income stream for a set period of time. A life annuity pays an income out for the lifetime of the annuitant (the person whose life the annuity is based on).


What is a lifetime annuity?

A lifetime annuity is an annuity that is purchased with a payout period that will, in most cases, give a predictable payment each month for the lifetime of the annuitant (the individual whose life the annuity is on).

Related questions

An annuity with an infinite life is called a?

Perpetuity


What is the primary difference between an annuity and a compound annuity?

difference between an annuity and a compound annuity?Read more: What_is_the_primary_difference_between_an_annuity_and_a_compound_annuity


What is the difference between the term annuity with a small a and the term Annuity with a capital A?

I don't believe there is any difference.


Is there a difference between a life annuity and an insurance annuity?

There isn't a real difference between life annuity and an insurance annuity. Both are a form of life insurance and deal with the same issues. I would go with either one.


What The difference between ordinary annuity and annuity due?

ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period


What is the difference between a lump sum and annuity?

The difference between a lump sum and annuity is, lump some you get a anywhere between half or 3 quarters of the money. An annuity is where you will get a certain amount of money for a certain amount of years.


What is difference between annuity and compound interest?

Pundai


An annuity pays out 20000 per yer in perpetuity if the intereset rate is 5 percent compounded annually find the presenet value of the whole annuity?

400000


What is the meaning of perpetual-annuity?

a perpetual annuity is an annuity that continues forever- it has an infinite life.That is every year from its establishment this investment pays the same dollar amount.An example of a perpetuity is the dividend stream on preference shares.


What is the Difference between the future value of annuity and sinking fund?

future value of an annuity is a reciprocal of a sinking fund


How does a US annuity differ from a Swiss annuity?

The biggest difference between a US annuity and a Swiss annuity is that Swiss annuities are not subject to the usual tax and bankruptcy reporting requirements and can be used in offshore tax planning.


What is the difference between installment and annuity?

Instalments are payments for your debts which can be paid on monthly, quarterly or yearly basis or way to make payments. Annuity is insurance product which is contract between you and insurance company for your investments.