Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
• B)Most car loans,mortgages,and some bonds are annuities.
• C)A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
• D)An annuity is a stream of N equal cash flows paid at irregular intervals.

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Definitions:

Enforceable Contract

A valid contract that is legally binding and can be upheld and enforced in court if necessary.

Oral Agreement

A contract formed through spoken communication rather than in written form, yet legally binding in many cases.

Delivery Service

A business or system that transports goods or packages from one location to another, ensuring they reach recipients.

Enforceable

Refers to a legal agreement or obligation that can be legally imposed or upheld by a court.