Monthly payments equal to 100% of the income earned by a restaurant ﬁts the deﬁnition of a
perpetuity.

Question

Quizplus · Accepted Answer

A perpetuity is a stream of equal payments that continues indefinitely. In this case, monthly payments equal to 100% of the income earned by a restaurant would not be a fixed or predictable stream of payments, as the income of a restaurant can fluctuate greatly. Therefore, this would not fit the definition of a perpetuity.

Monthly Payments Equal to 100% of the Income Earned by a Restaurant