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Explain the term annuity

Explain the term: annuity. How can continuous compounding benefit an investor?

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Annuity is a chain of equal cash flows that is spaced uniformly over time.
The increasing affect the number of compounding periods per year is to increase the investment’s future value. If the interest is compounded very frequently, the future value will be more.  The smallest number of compounding period is used when we compute continuous compounding.

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