Vidyalelo
Commerce · Q116

Insurance

Graduate and Post Graduate · Commerce · question 116

Q116

_________ is an annuity with an infinite life and continuous annual payments.

A.
APR
B.
Amortized loan
C.
Perpetuity
Answer
D.
Principal

Answer: Option C

Solution

Answer: Option C
Solution:
Perpetuity is an annuity with an infinite life and continuous annual payments. As the name suggests, perpetuity is a bond or security with no fixed maturity date.