Q383
An annuity with an extended life is classified as
A.
extended life
B.
perpetuity
AnswerC.
deferred perpetuity
D.
due perpetuity
Answer: Option B
Solution
Answer: Option B
Solution:
An annuity with an extended life is classified as perpetuity. A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence.