Purchased annuity and Purchasing power parity: Difference between pages

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In its simplest form, a contract purchased from an insurance company that pays a periodic income (for example monthly, quarterly, semi-annually, or annually) for the life of a person, or for the lives of two (or sometimes more) persons.
Purchasing power parity theory predicts that differences in periodic inflation rates will be offset and exactly matched by the change in the spot foreign exchange rate between the two related currencies over time.
Many variations on this basic theme are available.
 
Generally that part of an annuity representing a return of capital is not taxable.


== See also ==
== See also ==
* [[Annuity]]
* [[Absolute purchasing power parity]]
* [[Four way equivalence model]]


[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 13:25, 9 June 2020

Purchasing power parity theory predicts that differences in periodic inflation rates will be offset and exactly matched by the change in the spot foreign exchange rate between the two related currencies over time.


See also