A series of equal payments that occur at equal intervals and go on forever is called a(n):
A)ordinary annuity.
B)annuity due.
C)perpetuity.
D)non-ending stream.
E)None of the above

Question

Quizplus · Accepted Answer

A perpetuity is a series of equal payments that occur at equal intervals and go on forever. The other options have different characteristics: an ordinary annuity has a finite number of payments, an annuity due has payments that occur at the beginning instead of the end of each period, and a non-ending stream is not a commonly used financial term.

A Series of Equal Payments That Occur at Equal Intervals