Question

Perpetuities have:

a) Irregular payments but constant payment periods.
b) Equal payments and an infinite life.
c) Equal payments and a set number of equal payment periods.
d) Less value than comparable annuities.
e) No application in today's world.

Answer 1

Answer:

b) Equal payments and an infinite life

Explanation:

A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.