Which of the following statements is incorrect?

-All the answers are correct except one.

-A perpetuity is like an annuity except that the cash flows are perpetual and they never end.

-The effective annual interest rate (EAR) is the true cost of borrowing and lending.

-The quoted interest rate is by definition a simple monthly interest rate, like the EAR.

-The present value of a perpetuity is the promised constant cash payment divided by the interest rate (i).