Business Math and Statistics

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Suggest if the company need to set aside the lump sum of money that will collect interest or company should purchase annuities. Support your suggestion with argument.

  • Business Math and Statistics -

    I'm having trouble coming up with a "common" circumstance example of why a firm would purchase an annuity. Annuities generally lose their liquidity. The most common reason why a firm would hold a pile of cash is to have cash reserves -- to pay for unexpected events.

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