Perpetuibies are aiso called annuities with an extended or unfimited 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 value af a perpetuity cannot be determined. A perpetulity is a stream of regularly timed, equal cash fows that continues forever. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows. A perpetuity is a stream of unequal cash fows. Your grandfather wants to establish a scholarship in his father's name at a focal university and has stipulated that vou nill administer it. As you've committed to fund a \$25,000 scholarship every year beginning one year from tomorrow, you wi want to set aside the money for the schoiarship immediately. At tomorrow's meeting with vour grandfather and the bank's representative, you will need to deoosit (rounded to the nearest whale doltar) so that you can fund the scholarahip forever, assuming that the account will earn 5.50 s per annum every vear. Oeps the bank representative just reported that he misquoted the available interest rate on the scholarahips account: Your account should earn 3.50\%. The amount of your required deposit should be revised to This suggests there is interest rate earned on the account and the present value of the perpetulty. relationship between the