Which of the following comparison statements is true? Multiple Choice An annuity has equal payments, a...

Which of the following comparison statements is true? Multiple Choice

An annuity has equal payments, a perpetuity does not.

Both an annuity and a perpetuity have payments with equal values.

An annuity covers a longer period of time than a perpetuity.

An annuity has a constant rate of return, a perpetuity does not.

An annuity has a different rate than a perpetuity.

Expert Solution

Ans- Option 2. Both an annuity and a perpetuity have payments with equal values.

- Annuity is equal periodic payment made for a particuar period of time while A perpetuity is Constant equal Payments indefinately ,i.e., forever. A perpetuity is annual payments forever

They both have equal paymnets

jeff jeffy answered 2 years ago

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