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 (REDUCE or INCREASE) the interest rate earned on your deposited funds.

The change to your required deposit will cause your earned interest rate to change to (27.60%, 26.40%, 25.20%, 24.00%).

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. A perpetuity continues for a fixed time period. O The principal amount of a perpetuity is repaid as a lump-sum amount. O In a perpetuity, returns-in the form of a series of identical cash flows-are earned. A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. 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? 32.40% O 57.60% 36.00% 43.20%