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Principles of Finance

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Principles of FinanceVideo Activity

Future Value of Ordinary Annuities

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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

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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?
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