- 1 Marks
Question
A constant annual cash-flow to infinity is called:
A. Perpetuity
B. Sinking funds
C. Compound interest
D. Loan
E. Annuity
Answer
A. Perpetuity
Explanation:
The correct answer is A because a perpetuity is a financial instrument that provides a steady stream of cash flow indefinitely, without any end date.
- Tags: Cash Flows, Financial instruments, Perpetuity
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2022
- Uploader: Theophilus