Examples of an _____ include regularly scheduled mortgage payments, individual retirement account (IRA) contributions, loan payments, and pension payments.

		Derivatives
		Social securities
		Annuity
		Perpetuity
		None of the above

5 points

QUESTION 29

A series of regular payments of equal amount of future cash flows forever is _____.

		perpetuity
		municipal securities
		corporate bonds
		mortgage backed securities
		None of the above.

5 points

QUESTION 30

According to the text, which of the following is a formula to determine the future value of an annuity?

		(PMT/i) [(1 + i)n 1]
		(PMT/i) [1 1/(1 + i)n]
		PMT/i
		PV(1 + i)n
		None of the above.