An Annuity Stream Where the Payments Occur Forever Is Called

question 287

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:

Expert Power

The influence that one has over others as a result of specialized knowledge, skills, or expertise.

Legitimate Power

Authority or power derived from a position, role, or legal standing, which is recognized and accepted by others.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties.

Reward Power

The capacity to offer something desirable to influence another’s behavior or decisions.