97 Video Activity
Future Value of Ordinary Annuities
If you have difficulty viewing the link above, use this link https://youtu.be/ADpfhW2K39o
After viewing the video, answer the following questions:
1. What is the primary difference between this demonstration and our chapter examples, keeping the chapter “Time Value of Money I” in mind?
2. Explain the significance of Dr. van Biezen’s comment at 4:32 regarding a difference when payments are made at the beginning of each pay period rather than the end.
Practical Example of Annuities
If you have difficulty accessing the video above, use this link https://youtu.be/xZlortwSdSg
After viewing the video, answer the following questions:
3. What is the primary difference between a fixed annuity and a variable annuity?
4. Annuities are often recommended to retirees and seniors. Why would a fixed annuity be more attractive to such a person than a variable annuity?
Attribution:
This chapter is from “Principles of Finance” https://openstax.org/books/principles-finance/pages/1-why-it-matters by Dahlquist and Knight. This book is licensed under the CC-BY 4.0 license. 2022 OpenStax.
