Which Is the Best Definition of a Growing Annuity

question 189

Multiple Choice

Which is the best definition of a growing annuity?

• A) The interest rate charged per period multiplied by the number of periods per year.
• B) A finite number of growing annual cash flows.
• C) A constant stream of cash flows without end that is expected to rise indefinitely.
• D) An annuity in which the cash flows continue forever.
• E) A level stream of cash flows for a fixed period of time.

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Definitions:

Decision

The process or act of making a choice or judgement among several alternatives.

Purchase Aspect

The considerations and factors that influence a buyer's decision to acquire goods or services.

Trial Close

A sales technique where the seller asks a prospective buyer for feedback on a product or service before the final close.