Question

In a perpetuity, returns—in the form of a series of identical cash flows—are earned.

A) Annually
B) Monthly
C) Quarterly
D) Daily

Answer 1

In a perpetuity, returns are earned annually and last indefinitely.

Step-by-step explanation:

In a perpetuity, the returns are earned annually.

A perpetuity is a type of investment that provides a series of identical cash flows that go on indefinitely.

For example, if you invest in a perpetuity that pays $1000 annually with an interest rate of 5%, you will receive $1000 every year for as long as the investment exists.