Which of the Following Statements Regarding Annuities Is FALSE

question 32

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:

Egalitarian

Relating to or believing in the principle that all people are equal and deserve equal rights and opportunities.

Social Justice

The equitable distribution of wealth, opportunities, and privileges within a society, aiming at fairness and equality in human rights.

Artificial Termination

The intentional ending of a process or activity before it naturally concludes, often used in medical contexts to refer to procedures like abortion.

Pregnancy

The condition of having a developing embryo or fetus in the body, typically lasting about 40 weeks in humans from the last menstrual period to childbirth.