Different Types of TVOM
Growing Annuity
A growing annuity is the same as annuity in that payments for both end at a certain period. However, payments of growing annuity increase at a constant rate while payments of annuity are fixed.
Growing annuity is also similar to growing perpetuity; payments of both increase at a constant rate. Unlike growing perpetuity, payments of growing annuity end at some point.
