Which of the Following Statements Regarding Annuities Is FALSE

question 25

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:

Canadian Short-Term Interest Rates

The interest rates applied to short-term financial instruments in Canada, typically with maturities of less than one year.

Bank Of Canada

The central bank of Canada, responsible for the country's monetary policy, issuing currency, and acting as the government's banker.

Divisional Level

Pertains to a specific segment or area of operation within a larger organization, often responsible for their own budgets and strategy.