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 continues for a fixed time period. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. A local bank's advertising reads: "Give us $35,000 today, and we'll pay you $200 every year forever. If you plan to live forever, what annual interest rate will you earn on your deposit? 0.46% 0.68% 0.57% 0.51% 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 $52,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to U 0.51% increase reduce Oops! When you went in to make your deposit, the bank represer Incorrect and should have read $52,500. This revision, which will earned interest rate to the amount of required deposit reported in the advertisement was the interest rate earned on your deposited funds, will adjust your O 0.57% 0.32% O 0.51% 0.42% 0.40% Oops! When you went incorrect and should h earned interest rate to 0.38% 5 your deposit, the bank representative said the amount of required deposit reported in the advertisement was 2,500. This revision, which will the interest rate earned on your deposited funds, will adjust your