Question: What is the difference between an annuity and a perpetuity? Multiple choice question. A perpetuity is an annuity with a set number of cash flows.

What is the difference between an annuity and a perpetuity?
Multiple choice question.
A perpetuity is an annuity with a set number of cash flows.
A perpetuity is an annuity with steadily decreasing cash flows.
A perpetuity is an annuity with payments that increase as time progresses.
An annuity has a fixed number of cash flows while a perpetuity has unending cash flows.

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