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What is annuity? Is an annuity worth more or less than a lump sum payment received now that would be equal What is annuity? Is an annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future annuity payments?

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Not sure I understand your question but it sounds like your trying to understand the concept re the time value of money. Here's the concept: all things being equal an investor prefers to have a dollar today rather than a dollar tomorrow. The economic rationale being uncertainty: in the future you may be unable to enjoy this money so you might as well have all of it now. WIthout getting into the finance particulars there is an additional amount of money received over the course of the annuity (a risk premium) that would make you indifferent to receiving this new annuity amount and the original lump sum - in your mind these choices would be equivalent. An annuity is a series of annual payments over a specified time - example you receive $100 a year for 10 years = $1000 over that 10 year period All things being equal an annuity is ALWAYS worth less. $1000 today is better than getting $100 over 10 years - see the theory above to understand why.