Answer:-
The primary difference between an annuity and a perpetuity lies in the length of the payment period. An annuity offers a fixed number of payments over a specific time frame, like 10 or 20 years, and stops once the period ends. On the other hand, a perpetuity provides payments that go on forever. An annuity has a defined end date, whereas a perpetuity lasts forever. Annuities are commonly used in retirement and insurance planning, while perpetuities are rare due to their infinite nature. Both serve important financial purposes but are applied in different contexts for investment and income strategies.
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