Which of the Following Statements Regarding Annuities Is False

question 73

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:

Long-Range

Pertaining to strategic decisions or actions that consider and impact a significant period into the future, often beyond the immediate or short term.

Point-Of-Sale Computers

Computerized systems used in retail environments to conduct sales transactions, manage inventory, and record customer purchases.

Short-Term Forecasts

Predictions about future events or trends that are expected to occur within a relatively brief time period.

Short-Range Forecasts

Predictions about future events or trends focusing on a short period, often used for immediate planning or decision-making.