Differences between perpetuities and annuities

write 600–800 words that respond to the following questions with your thoughts, ideas, and comments. Provide a reference sections and intext citations.

 

Describe the differences between perpetuities and annuities. Give examples of both types of products. Then, browse the following Web sites:

  1. https://personal.vanguard.com/us/funds/byobjective/detail?category=LifeCycle
  2. http://www.johnhancock.com/products/annuities.html
  • 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?