If Your Investment Pays the Same Amount at the End

question 49

Multiple Choice

If your investment pays the same amount at the end of each year for a period of six years, the cash flow stream is called:

• A) a perpetuity.
• B) an ordinary annuity.
• C) an annuity due.
• D) a growing perpetuity.

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Definitions:

Stock Options

Financial instruments that give employees the right to buy or sell shares of the company's stock at a predetermined price.

Incentive Pay

A form of compensation designed to reward employees for achieving specific performance targets, thereby motivating them to increase productivity.

Performance Measures

Metrics or indicators used to assess the efficiency, effectiveness, or outcomes of an activity, process, team, or organization.