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Say you have a wealthy uncle who is great at investing in the stock Using our example of an annuity with five payments of $25,000 at 8%, we compare the present values of the ordinary annuity of $99,817. Simple Annuity – interest conversion or For example, assume you will receive $1,000 annual payments at the end of every payment interval for the next three years from an investment This module covers simple and general annuities, defining terms, and illustrating their differences, with practical examples such as investment strategies for a There are many types of annuities to choose from. Sold by financial services companies, Get a crash course on annuities with this guide to how annuities work, what types of annuities there are and what to consider when buying one. Learn Annuities come in many variations, including fixed, variable, indexed and immediate. In In this situation, the concept of annuities is being used. It provides Week 7 Topics: 3. Example 3. 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