9. Perpetuities Aa Aa Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the following questions Which of the following are characteristics of a perpetuity? Check all that apply The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate [ ] In a perpetuity, returns-in the form of a series of identical cash flows-are earned A perpetuity continues for a fixed time period A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. A local bank's advertising reads: "Give us $50,000 today, and we'll pay you $800 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 1.28% 1.60% 1.92% 2.24% Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $75,000. This revision, which will rate earned on your deposited funds, will adjust your earned interest rate to the interest 1.07% 1.18% 0.91% 1.23% Flash Player MAC 27,0,0,183