An annuity with an extended life is classified as_____________?
Correct answer: B. Perpetuity
- A. Extended life
- B. Perpetuity
- C. Deferred perpetuity
- D. Due perpetuity
Explanation
A perpetuity is an annuity whose payments continue indefinitely, effectively giving it an unlimited life. A deferred perpetuity only adds a delayed starting date, which the question does not specify.
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