# types of annuity

**Discussion Question 3 – CLO 1, CLO 2, CLO 3, CLO 4, CLO 5**

Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below.

- Define and discuss the time value of money in the context of compounding interest.
- Explain what an annuity is and what are the two most common types of annuity. Explain how the present value and future value of an annuity is determined.
- Extend the notion of compounding mentioned in your answer to part “a” above to general situations where compounding is induced by growth, inflation, or deflation.

Note:

**1. Define the words in your own words. Do not directly quote from the textbook.**

**2. Need to write at least 3 paragraphs**

**3. Need to include the information from the textbook as the reference.**

**4. Need to include at least 2 peer-reviewed articles as the reference.**

**5. Need to provide examples whenever applicable.**

**6. Please find the related PowerPoint and textbook in the attachment. **

**7.** Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable.

8. Please find the Course Learning Outcome list of this course in the attachment

Textbook Information:

Ross, S. A., Westerfield, R. W., & Jordan, R. D. (2018). *Fundamentals of corporate finance* (12th ed.). McGraw-Hill

**ISBN:** 9781259918957