Which of the following are characteristics of a perpetuity? Check all that apply.

The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate.

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

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

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

A local bank's advertising reads: "Give us $$40,000$ today, and we'll pay you $$800$ every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit?

$1\mathrm{.}80\%$

$2\mathrm{.}00\%$

$2\mathrm{.}80\%$

$3\mathrm{.}20\%$

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 $$60,000.$ This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to