Give two examples of annuity payments using appropriate vocabulary (see Investopedia). Under what circumstances each of these payments is used? Be sure to explain why these payments are considered annuities. 2. Please create (do not copy, it has to be created by you) an annuity problem for yourself and solve it (be very specific while demonstrating your solution strategy). What conclusions can you draw from your solution? Part 2 3-4. Which strategy would result in a higher amount in 10 years and why: Saving $100 at the end of each month at 10% compounded monthly for the next 5 years, and then just keeping the invested amount to continue drawing the interest for the rest of the time not contributing to the account any more? or • Saving $50 at the end of each month at 10% compounded monthly for the next 10 years? Which one would you choose and why? Your answer must be supported by appropriate calculations for both scenarios. 5. Post 2 peer replies and acknowledge any feedback addressed to you.
