I believe the last question is a reduction in the interest, so I filled that one in.

Assignment 05 - Time Value of Money Due on Oct 29 at 11 PM EDT Back to Assignment Attempts: 14. Perpetuities Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of Average:/7 AaAa perpetuities, answer the following questions. Which of the following are characteristics of a perpetuity? Check all that apply. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The value of a perpetuity cannot be determined. The value of a perpetuity is equal to the sum of the present value of its expected future 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 local bank's advertising reads: "Give us $20,000 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 1.60% o 2.00% o 3.20% O 1.30% 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 $30,000. This revision, which will reduce the interest rate earned on your deposited funds, will adjust your earned interest rate to