Which of the following is correct concerning perpetuities?
A) Perpetuities consist of a stream of equal payments.
B) Perpetuities have a life of between twenty and one hundred years.
C) Perpetuities have a variable rate of return.
D) The present value perpetuity formula for a stream of annual payments is: C/(1 + r/12) 12.
E) Perpetuities do not occur in real life situations.
Correct Answer:
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