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9. Perpetuities Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the follawing questions. Which of
9. Perpetuities Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the follawing questions. Which of the following are characteristics of a perpetuity? Check all that apply. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows The value of a perpetuity cannat be determined. The value of a perpetuity is equal to the sum of the present value of its expected future cash lows A perpetuity is a stream of unequal cash lows. A local bank's advertising reads: "Give us $40,0DD today, and we'll pay you $600 every year forever." If you plan to live forever, what annual interest rate will you eam on your deposit? 0 1.50% 1.35% 2.40% 1.80% 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 $60,000. This revision, which will rate eamed on your deposited funds, will adjust your eamed interest rate to the interest
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