Describe the differences between perpetuities and annuities. Give examples of both types of products.https://personal.vanguard.com/us/funds/byobjective/detail?category=LifeCycle

http://www.johnhancock.com/products/annuities.html

• Find one example of a perpetuity.
• Find one example of an annuity.
• How is the perpetuity structured?
• How is the annuity structured?
• Why would an investor prefer one product over the other?
• Keeping the time value of money in mind with respect to the initial cash out-lay, what does a preference of one product over the other say about the investors feeling of the time value of money?
• 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 they prefer?
• If the investor had a long life expectancy, which investment would they prefer?

Instructor comments:PH2 DB 75 Points 500-700 words Rubric: Max. score Your score Meaningful discussion with peers 15 15 Analyzing key concepts 15 11 Own experience 15 15 Grammar 9 9 References 6 2 Main post on time 9 0 Two responses on time 6 6 Your strengths: Defining perpetuity and annuity Comments: The easiest two examples for perpetuity and an annuity are a rental property for perpetuity, and an annuity that is offered by an insurance company. There is another element that should be explored, that is what would you do with the received interest? Some will tend to spend it; others will reinvest the proceeds for more return. Your paper: I was expecting a numerical example for both The equations will also explain TVM References: Please follow the APA format You need 2 references