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.

$1.$ The principal amount of a perpetuity is repaid as a lump$-$sum amount.

$2.$ In a perpetuity, returns$$in the form of a series of identical cash flows$$are earned.

$3.$ A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

$4.$ A perpetuity continues for a fixed time period.