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Sipho Just Signed a Long-Term Lease on a Townhouse in Johannesburg

Question 33

Multiple Choice

Sipho just signed a long-term lease on a townhouse in Johannesburg (near Sandton) that requires him to make equal monthly payments for the next five years.The payments Sipho has promised to make represent a(n) __________ for the landlord.


A) ordinary annuity
B) annuity due
C) series of uneven cash flows
D) perpetuity

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