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Mr. Gregory White
Mr. Gregory White, Master's Degree
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Subject: Discussion 2 Priority: Normal Date: Sunday,

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Subject: Discussion 2
Priority: Normal Date: Sunday, April 3, 2016 8:52 PM Size: 3 KBSkip HeaderOttie.dykes1
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Home > Classroom > Corporate Finance > Assignment List > Unit 1 - Discussion
Board 2
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Unit 1 - Discussion Board 2
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Assignment Overview
Type: Discussion BoardUnit: Time Value of Money Due Date: Sun, 4/10/16 Grading
Type: NumericPoints Possible: 75 Points Earned: 0 Deliverable Length:
600–800 words View objectives for this assignment
Primary Task Response: Within the Discussion Board area, write 600–800 words
that respond to the following questions with your thoughts, ideas, and comments.
This will be the foundation for future discussions by your classmates. Be
substantive and clear, and use examples to reinforce your ideas.
Describe the differences between perpetuities and annuities. Give examples of
both types of products. Then, browse the following Web sites:
https://personal.vanguard.com/us/funds/byobjective/detail?category=LifeCycle
https://www.jhannuities.com/Marketing/default.aspx
What information on the first Web site could be the most applicable to a
consumer or investor?
What information on the second Web site could be the most applicable to a
consumer or investor?
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.
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.
Why would an investor prefer one product over the other? Explain your answer.
How does the time value of money impact the eventual returns of both products?
If the investor had a short life expectancy, which investment would he or she
prefer?
If the investor had a long life expectancy, which investment would he or she
prefer?
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(s16)
Submitted: 8 months ago.
Category: Essays
Expert:  Mr. Gregory White replied 8 months ago.
Hello, my name is ***** ***** any other information you can send to see if I can assist on it this for you? If you have any documents you can upload, you can do so to mediafire.com or box.com and share the link here with us.If I had a model and could provide that as a model (would have to check files to see if I have one), would that be sufficient or are you seeking a fully written new model document?
Customer: replied 8 months ago.
Mr. Greggory White
Hi, I have no further document for you other than the assignment from the campus: Please include APA STYLE, with references thanks. Do the best with this assignment.Respectful!
Ottie
Customer: replied 8 months ago.
Discussion Board > Unit 1 - Discussion Board 2 > Unit 1 - Discussion Board 2This is one classmate guide line, I hope you can use this as model, please respond ba soon.ck to me
Unit 1 - Discussion Board 2
Create New PostSHOW ASSIGNMENT DETAILSPerpetuity is the stream of level cash payment that never ends whiles annuity is also the equal spaced level stream of cash flows with a finite maturity (Marcus J.A, Myers, C.S., Brealey A.R., 2012). Example of annuity is a 2 years car payment loan, this needs a 24 months equal payment for the maturity of the loan of the car.Example of perpetuity is when a country like the United States borrow a loan and instead of repaying the loan is willing to pay a fixed interest rate annually on the loan forever. Maybe paying 5% on the loan forever.PV= C/ (1 + r) ˆ1 + C / (1 + r) ˆ2+ C/ (1+ r) ˆ3 …. = c/ r (Investopedia, 2016).FV ordinary Annuity = C* (1+ i) ˆn – 1/ I and example is payment of rent and this is because you sign a contract with a fixed amount of money you at each month until the contract ends.I think saving for retirement will be the one applicable to the investor, this is because aging is inevitable and therefore most people do not know where to invest their money whiles working.As you grow old it is very difficult to take risk, so you leave your investment in the hands of the professionally managed asset mix for them to take the decisions for you. That is they invest most of your assets in bonds than in stocks. This is because bonds are secure when you get closer to retirement.I think I will like the fixed annuity for these important reasons as follows:
1.I can receive income for life and that can be used to pay for drugs
2.It gives safe investment with a fixed interest rates
3.I have the option to get higher interest rates if my premium is within some amount.
4.I can create some payout schedule for myself and my wife.Annuity has some basic features and below are:
1.Annuity increases every year but you do not pay taxes as you do for income.
2.Insurers get money on annuity fees and services: once you invest in annuity and then you die, they will have to give the balance to anyone who is to inherit the money.Annuity is flexible, it allows you to choose your money at your own pace. That is you decide when to take your money at the time that is convenient whiles perpetuity is complex. This means that your actual money will not be pay in one’s life time but will enjoy only the interest annually. Looking at the two scenarios, inventors will be willing to invest in the annuity so that they can get their money if there is an emergency.It depends on the terms and conditions available to the investor, example is if I win a lottery of $ 5 million and I will receive bulk of that money today, it will be better than tomorrow because I can invest in other projects like housing which will give me more money than tomorrow because of return. But on the other hand like 2008 where we had the financial crisis I will prefer to get my money later.I believe the investor will buy an annuity, because default is an option and you cannot risk your assets when you have few years to live. The purpose is that you put in the money so you can used it on retirement if that is the case why will you invest in something that you cannot enjoy.I also believe investor will invest in perpetuity if he has a long life to live, this is because it will yield more interest rate and therefore will have a better return in the long run.ReferencesFundamentals of corporate finance (Marcus J.A, Myers, C.S., Brealey A.R., 2012).Complete guide to corporate finance (Investopedia, 2016). Retrieved from: http://www.investopedia.com/walkthrough/corporate-finance/3/discounted-cash-flow/perpetuities.aspxCalculating the present and future value of annuities (carther S., 2016). Retrieved from: http://www.investopedia.com/articles/03/101503.asp15 things you need to know now about Annuities (Moeller P., 2008). Retrieved from: http://money.usnews.com/money/blogs/the-best-life/2008/12/12/15-things-you-need-to-know-now-about-annuitiesReply | Quote & Reply|Report AbuseMark as ReadRe:Unit 1 - Discussion Board 2 0 Like***** ***** Apr 06, 2016 01:39 PMHello Francis,Thank you for jumping in and positing first. I am working on mine now and reading yours
Customer: replied 8 months ago.
Hi Mr. Greggory White
Where is the answers to Unit 1 Discussion Board 2, I'm looking for the assignment with answers, I cannot rate you until I receive the answers.Respectful!
Ottie
Expert:  Mr. Gregory White replied 8 months ago.
After going through my resources, I do not have what is necessary to complete at this time.I am opting out and opening up to the other professionals and messaging a couple who might be able to help. Someone should be with you shortly.

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