Which of the following statements is FALSE?
A)The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
B)Most car loans,mortgages,and some bonds are annuities.
C)A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
D)An annuity is a stream of N equal cash flows paid at irregular intervals.

Question

Quizplus · Accepted Answer

An annuity is a stream of equal cash flows paid at regular intervals, not irregular intervals. Option D states that the cash flows are paid at irregular intervals, thus making it false.

Which of the Following Statements Is FALSE