What can you say about the difference in value between your total contribution (TC) and thelump sum (F) that you will receive? Based on what you have learned in this unit, is there a term that is used for this difference?

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Breanna Huerta

15 September, 18:15

What can you say about the difference in value between your total contribution (TC) and thelump sum (F) that you will receive? Based on what you have learned in this unit, is there a term that is used for this difference?

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Answers (1)

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Jaylah Dunlap · Answer 1

Answer and explanation:

About the difference in value between total contribution and the lump sum I can say that with a lump sum we are more likely to receive the money all at just on moment. This can lead us to waste all of our money all at once. The total contribution sometimes is not as much as we were waiting for it is still useful so we can track of how much money we are spending.

The term that is used for this difference is annuitization.