An Annuity

question 7

Multiple Choice

An annuity

• A)has greater value than a comparable perpetuity.
• B)is either an equal or an unequal stream of payments that occur in equal time periods for a finite period of time.
• C)is a stream of payments that fluctuate with current market interest rates.
• D)is a stream of equal payments that occur in equal periods of time for a finite period.
• E)has a longer life span than a perpetuity.

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Definitions:

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