Which one of the following is a correct definition?

Points: 1

1. An ordinary annuity is an infinite stream of equal payments which occur at the end of each time period.

2. A perpetuity due is an infinite stream of equal payments which occur at the end of each time period.

3. A perpetuity is an infinite stream of equal payments which occur at the beginning of each time period.

4. An ordinary annuity is a finite stream of equal payments which occur at the end of each time period.