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.

---

Definitions:

Mood Disorders

Psychiatric conditions where the primary symptom is a disturbance in mood, leading to periods of excessive happiness or profound sadness.

Lamotrigine

A medication used primarily for the treatment of epilepsy and bipolar disorder by stabilizing mood and reducing seizures.

Mood Disorders

A category of mental disorders involving persistent disruptions in mood, exemplified by major depressive disorder and bipolar disorder.

Episode Recurrence

The return of symptoms after a period of remission in the context of chronic conditions, such as depression or bipolar disorder.