A never-ending stream of equal periodic,end-of-the-period cash flows is called a/an ________.
A)annuity
B)annuity due
C)perpetuity
D)amortization

Question

Quizplus · Accepted Answer

A perpetuity is a series of equal cash flows that continues forever, unlike an annuity which has a finite number of cash flows over a certain period of time. An annuity due is an annuity where the payments are due at the beginning of each period instead of at the end, and amortization refers to the process of paying off a debt over time with regular payments that include principal and interest.

A Never-Ending Stream of Equal Periodic,end-Of-The-Period Cash Flows Is Called