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. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. A perpetuity is a stream of unequal cash flows. The value of a perpetuity cannot be determined. 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 $15,000 today, and we'll pay you $600 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 5.60% 4.80% 4.00% 3.20% 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 $22,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to 2.54% 2.27% 3.07% 2.67%