What is the difference between an annuity and a sinking fund? If you were to set up an annuity today to purchase something in 7 years what would it be for? If you were getting 6% compounded annually what would your payments need to be to reach your goal? What type of payments would you want to make (monthly, quarterly, yearly, etc) and why?© BrainMass Inc. brainmass.com June 3, 2020, 11:55 pm ad1c9bdddf
A contrast is made between an annuity and a sinking fund.