Describe the applications of annuity in real life. The text states that an investor might obtain as much income from bonds as from an annuity, since frequency the price of annuities is not attractive. For example, if a straight life annuity costs Rs. 120,000 and offers a life income of Rs. 12,000 a year, it is better to invest the money in a bond paying 12 percent interest. Do you agree? Why or why not?