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Which one of the following statements is correct? Perpetuities are finite but annuities are not. Most loans are s form of a perpetuity. A perpetuity
Which one of the following statements is correct? Perpetuities are finite but annuities are not. Most loans are s form of a perpetuity. A perpetuity comprised of $200 monthly payments is worth less than an annuity comprised of $200 monthly payments given an interest rate of 10 percent, compounded monthly. The present value of a perpetuity cannot be computed, but the future value can. An ordinary annuity is worth less than an annuity due given equal annual cash flows for 5 years at 5 percent merest, compounded annually
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