A growing annuity is a set of:

Question

Quizplus · Accepted Answer

A growing annuity refers to a series of cash flows that increase at a constant rate for a fixed number of periods. This distinguishes it from a perpetuity (answer B), which has level cash flows occurring indefinitely, and an ordinary annuity (answer E), which has level cash flows for a fixed period of time. Answer A is a general definition that does not accurately describe a growing annuity, and answer D is incorrect because it describes an annuity with increasing cash flows that occur indefinitely, which is not a common financial arrangement.

A Growing Annuity Is a Set Of