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 an annuity stream that continues forever, with no end date for the cash flows. An annuity due makes payments at the beginning of each period, rather than at the end, and an indemnity is a payment made to compensate for loss or damage. An amortized cash flow stream is a series of payments that includes both interest and principal, and an amortization table shows how those payments are allocated over time.

An Annuity Stream Where the Payments Occur Forever Is Called