Which of the following statements regarding annuities is FALSE?

A) PV of an annuity = C × ImageImage
B) The difference between an annuity and a perpetuity is that a perpetuity ends after some fixed number of payments.
C) An annuity is a stream of N equal cash flows paid at regular intervals.
D) Most car loans, mortgages, and some bonds are annuities.


Answer: B

Business

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