Contrast the Future Value of a Fixed Sum Concept with the Future

question 25

Essay

Contrast the future value of a fixed sum concept with the future value of an annuity concept. Give examples of situations where they are used by the financial planner.

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Definitions:

Accountability

The obligation to be answerable for one's actions, ensuring responsibility is accepted and mistakes are rectified.

Management

The process of dealing with or controlling things or people, often within an organization, including planning, decision making, organizing, leading, and controlling.

Motivation

Stimulation and inspiration to move; the leadership task of mobilizing people with different ideas, skills, and values to achieve a common mission; the experience of physical and emotional needs, progressing from basic needs for survival and security, to social needs for belonging and respect, to the complex need for fulfillment. See energize and empowerment.