The annuity in which periodic payments b

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Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

The annuity in which periodic payments begin on a fixed date and continue forever is called :

Options:

Sinking Fund

Mutual Fund

Bond

Perpetuity

Correct Answer:

Perpetuity

Explanation:

The correct answer is Option (4) → Perpetuity

A perpetuity is an annuity in which periodic payments begin on a fixed date and continue indefinitely.