To think critically about : The present and future value of annuity while increasing the rate of discount. Introduction: The rate of return is associated with few kind of annuity. The fixed annuity guarantees a particular rate of return at a particular period, whereas the variable annuities are connected to other securities, which allows a higher return when there is an increase in the market and lower return when there is a decrease in the market.

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Chapter 6, Problem 3CRCT

Summary Introduction

To think critically about: The present and future value of annuity while increasing the rate of discount.

Introduction:

The rate of return is associated with few kind of annuity. The fixed annuity guarantees a particular rate of return at a particular period, whereas the variable annuities are connected to other securities, which allows a higher return when there is an increase in the market and lower return when there is a decrease in the market.

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