A stream of equal cash payments lasting forever is termed:
A)An annuity
B)An annuity due
C)An installment plan
D)A perpetuity

Question

Quizplus · Accepted Answer

A perpetuity is a stream of equal cash payments that lasts indefinitely, meaning that it continues forever. This is different from an annuity which has a set number of payments over a specific time period. Therefore, a perpetuity is the best choice for a stream of equal cash payments lasting forever.

A Stream of Equal Cash Payments Lasting Forever Is Termed