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:

Earnings Alteration

Changes or modifications to the amount of money earned by an individual or company.

Rental Price

The amount of money paid periodically for the use of an asset, property, or piece of equipment.

Marginal Product

The additional output generated by employing one more unit of a particular input, holding all other inputs constant.

Market Comparison

The analysis and evaluation of a company's performance, products, or services against those of its competitors within the same industry or market.