Perpetuity is defined as

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Multiple Choice

Perpetuity is defined as

Explanation:
A perpetuity is a constant stream of payments that continues forever, with no end date. That makes it a type of annuity that extends indefinitely. The description “an annuity without an end date” captures this idea exactly. The other options describe finite or one-time cash flows: an annuity with a fixed end date stops after a set number of periods; a loan with constant repayments is paid off over time, ending when the loan is repaid; a single payment at the end is just a one-time lump sum rather than a continuing series.

A perpetuity is a constant stream of payments that continues forever, with no end date. That makes it a type of annuity that extends indefinitely. The description “an annuity without an end date” captures this idea exactly. The other options describe finite or one-time cash flows: an annuity with a fixed end date stops after a set number of periods; a loan with constant repayments is paid off over time, ending when the loan is repaid; a single payment at the end is just a one-time lump sum rather than a continuing series.

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