An Annuity Stream Where the Payments Occur Forever Is Called

question 44

Multiple Choice

An annuity stream where the payments occur forever is called a(n) :

• A)annuity due.
• B)indemnity.
• C)perpetuity.
• D)amortized cash flow stream.
• E)amortization table.

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Definitions:

Indifference Curve

A graph representing combinations of two goods or services among which a consumer is indifferent, showing preference levels.

Optimal Consumption

The mix of goods and services that maximizes consumer utility or satisfaction given their budget constraints.

Indifference Curve

A graph showing different combinations of two goods among which a consumer is indifferent.

Increase in Income

A situation where an individual or entity experiences a rise in their earnings or revenue over a period.