Which of the following statements is incorrect?

If you pay the same insurance premium amount every month for a term life policy for a period of five years, then the stream of cash flows is called an annuity.

Any financial contract that calls for equally spaced and level cash flows over an infinite periods is called a perpetuity.

The Truth$-$in$-$Lending Act applies to all lenders that extend credit to consumers, and it covers credit card loans, auto loans, home mortgage loans, home equity loans, home improvement loans, and some small$-$business loans.

The correct way to annualize an interest rate is to compute the annual percentage rate $($APR$)$ is defined as the annual interest rate that takes compounding into account.

All the answers are correct except one.