- Trending Categories
Data Structure
Networking
RDBMS
Operating System
Java
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Compare annuity and lump sum.
The major differences between annuity and lump sum are as follows −
Annuity
The payments are spread across the period of time.
An investor who wants regular inflow of payments prefers annuity.
It is short term in nature.
The types of annuity are deferred and immediate.
An amount received is very less to take decision about investment or business.
The cash flow will add up to larger amount.
Lump sum
The payment is made at once.
An investor who is willing to get the money at point of time will prefer lump sum.
It is long term in nature.
There are no types in lump sums.
It includes high tax burden.
The payment is taken upfront.
Updated on 27-Jul-2020 08:12:20
- Related Questions & Answers
- How do you compute the future value of a lump-sum amount and an annuity?
- How is Annuity Due different from General Annuity?
- Differentiate between sinking fund depreciation and annuity method of depreciation.
- What is annuity method of deprecation?
- Compare depreciation and amortisation.
- Compare shares and debentures.
- Compare CAPEX and OPEX.
- Compare equity and commodity.
- Compare credit and debit.
- Compare time and money.
- Compare industry and sector.
- Compare bidding and auction.
- Compare budget and forecast.
- Compare corporation and incorporation.
- Compare depression and recession
Advertisements