Which of the Following Statements Regarding Annuities Is False

question 78

Multiple Choice

Which of the following statements regarding annuities is false?

• A) PV of an annuity = C ×
• B) The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments.
• C) An annuity is a stream of N equal cash flows paid at regular intervals.
• D) Most car loans, mortgages, and some bonds are annuities.

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Definitions:

Sieve-Tube Member

A type of elongated cell in the phloem of flowering plants, responsible for the transport of nutrients, particularly sucrose, throughout the plant.

Cuticle

In plants, a waxy layer covering the epidermis of plants, that protects the plant against water loss and disease-causing organisms. In animals, an outer covering that protects and supports the organism.

Phloem

The vascular tissue in plants that transports sugars and other metabolic products from leaves to other parts of the plant.

Parenchyma

A type of plant tissue comprised of living cells that are often soft and fleshy, involved in photosynthesis, storage, and transport.