A Series of Cash Flows of Equal Amount,equally Spaced in Time

question 6

Multiple Choice

A series of cash flows of equal amount,equally spaced in time is called:

• A)a perpetuity
• B)a present value factor
• C)an annuity
• D)a consol
• E)an effective annual rate

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Definitions:

Instrument

A formal document that serves as a legal evidence of a fact or agreement, such as a contract, deed, will, or promissory note.

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity under agreed terms.

Negotiated

Discussed or arranged terms and conditions towards an agreement through a process of bargaining.

Assigned

Designated or allocated to someone or something for a specific purpose.