TeachMeFinance.com teaches you basic finance concepts. Time Value of Money- Present Value, Future Value Annuities- The Present Value of an Annuity Perpetuities- The Present Value of a Perpetuity Kinds of Interest Rates- Nominal Rate, Periodic Rate, Effective Annual Rate (EAR) ...
Annuities Annuity You win the lottery. The lottery guy comes to your house and says you have to choose between getting $ 1,000,000 now in one lump sum, or getting structured payments of $ 50,000 a year for the next 22 years. Which do you take?? Or, similarly, let's say you ...