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Which of the following statements is FALSE? Most car loans, mortgages, and some bonds are annuities. A growing perpetuity is a cash flow stream that
Which of the following statements is FALSE?
Most car loans, mortgages, and some bonds are annuities. | ||
A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever. | ||
An annuity is a stream of N equal cash flows paid at irregular intervals. | ||
The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments. |
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