Question
Which of the following are characteristics of all perpetuities? (i) The present value is equal to the first payment divided by annual effective rate (ii)
Which of the following are characteristics of all perpetuities?
(i) The present value is equal to the first payment divided by annual effective rate
(ii) Payment continue forever
(iii) Each payment is equal to the interest earned on the principal:
A) i only B) ii only C) iii only D) i, ii, and iii E) Correct answer is not given
HINT: D is not the answer
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Personal Finance
Authors: Jane King, Mary Carey
2nd Edition
0198748779, 9780198748779
