A Perpetuity Differs from an Annuity Because

question 4

Multiple Choice

A perpetuity differs from an annuity because:

• A) Perpetuity payments vary with the rate of inflation.
• B) Perpetuity payments vary with the market rate of interest.
• C) Perpetuity payments are variable while annuity payments are constant.
• D) Perpetuity payments never cease.
• E) Annuity payments never cease.

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