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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 following questions Which of

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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 following questions Which of the following are characteristics of a perpetuity? Check all that apply. The principal amount of a perpetuity is repaid as a lump-sum amount. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. 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 $400 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 0 1.37% 0 1.14% 1.82% 0 1.03% 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 rate earned on your deposited funds, will adjust your earned interest rate to the interest

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