Question: 1st drop down options: reduce or increase 2nd drop down options: 25.20%, 24.00%, 27.60%, 26.40% Perpetuities are also called annuities with an extended, or unlimited,

1st drop down options: reduce or increase 2nd drop down options: 25.20%, 24.00%, 27.60%, 26.40% Perpetuities are also called annuities with an extended,

1st drop down options: reduce or increase

2nd drop down options: 25.20%, 24.00%, 27.60%, 26.40%

Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the following questions: Which of the following are characteristics of a perpetuity? Check all that apply. The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. In a perpetuity, returns-in the form of a series of identical cash flows-are earned. The principal amount of a perpetuity is repaid as a lump-sum amount. O A perpetuity continues for a fixed time period. A local bank's advertising reads: "Give us $10,000 today, and we'll pay you $3,600 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? O 36.00% O 32.40% O 43.20% 57.60% Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $15,000. This revision will the interest rate earned on your deposited funds. The change to your required deposit will cause your earned interest rate to change to

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