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Which of the following statements regarding annuities is FALSE? (I) A difference between an annuity and a perpetuity is that an annuity ends after some
Which of the following statements regarding annuities is FALSE? (I) A difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments. (II) When using the present value formula of perpetuity (C/r) to calculate the value at date 0 , the first payment occurs at date 0 . (III) When using the present value formula of growing perpetuity (C/(rg)) to calculate the value at date 0 , the first payment occurs at date 1 and doesn't include growth. (IV) In the growing perpetuity formula (C/(r-g)), g cannot be negative. (V) In the growing perpetuity formula (C/(rg)), g can be greater than r. A. II, III, IV, V B. II C. IV, V D. II, IV, V E. II, IV
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