An annuity stream where the payments occur forever is called a(n):
A) annuity due.
B) indemnity.
C) perpetuity.
D) amortized cash flow stream.
E) amortization tablE.

Question

Quizplus · Accepted Answer

A perpetuity is a series of equal payments that continues forever. It is a type of annuity that involves payments that do not have a specific end date. An annuity due has payments that occur at the beginning of each period, not forever. Indemnity refers to compensation or reimbursement for a loss or damage suffered. Amortized cash flow stream and amortization table are not relevant to this question.

An Annuity Stream Where the Payments Occur Forever Is Called