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What is a perpetuity?
- a)An investment with a finite duration
- b)An investment with an infinite duration
- c)An investment with variable returns
- d)An investment with fixed returns
Correct answer is option 'B'. Can you explain this answer?
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What is a perpetuity?a)An investment with a finite durationb)An invest...
A perpetuity is an investment that pays a constant stream of cash flows indefinitely, with no specific end date. Therefore, it has an infinite duration.
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What is a perpetuity?a)An investment with a finite durationb)An investment with an infinite durationc)An investment with variable returnsd)An investment with fixed returnsCorrect answer is option 'B'. Can you explain this answer?
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