Dropdown options

1) Reduce or Increase

2) 0.62%, 0.50%, 0.65%, 0.59%

8. Perpetuities 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 value of a perpetuity is equal to the sum of the present value of its expected future cash flows. A perpetuity is a stream of unequal cash flows. A perpetuity is a stream of regularly timed, equal cash flows that continues forever. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted I value of its more distant (in the future) cash flows. A local bank's advertising reads: "Give us $45,000 today, and we'll pay you $400 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit? 0.80% 0.71% 1.07% 0.89% 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 $67,500. This revision, which will the interest rate earned on your deposited funds, will adjust your earned interest rate to