9. Perpetuities 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. A perpetuity is a stream of unequal cash flows. 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. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity cannot be determined. A local bank's advertising reads: "Give us $45,000 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? 1.42% 2.85% 2.49% O 1.78% 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 $67,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to 9. Perpetuities 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. A perpetuity is a stream of unequal cash flows. 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. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity cannot be determined. A local bank's advertising reads: "Give us $45,000 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? O 1.42% 2.85% 2.49% 1.78% reduce increase Oops! When you went in to make your deposit, the bank represer the amount of required deposit reported in the advertisement was incorrect and should have read $67,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to 9. Perpetuities 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. A perpetuity is a stream of unequal cash flows. 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. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity cannot be determined. A local bank's advertising reads: "Give us $45,000 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? 1.42% 2.85% 2.49% 1.01% 1.78% 1.37% 1.13% Oops! When you went your deposit, the bank representative said the amount of required deposit reported in the advertisement was 1.19% incorrect and should ha 67,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to
