Which of the Following Statements Regarding Annuities Is FALSE

question 52

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:

Disavow the Contract

The act of denying any responsibility or support for the contract, thereby seeking to void the agreement.

Identified to the Contract

Identified to the Contract refers to goods that have been designated as the subject of a sales or service contract.

Revised UCC Article 1

refers to updates or changes made to the first article of the Uniform Commercial Code, which governs sales and commercial transactions in the United States.

Good Faith

A concept implying honesty in intent and fairness in practice, without any intention to deceive or defraud in a transaction or contractual agreement.