Annuities and Perpetuities Quiz

• The present value is always greater than the future value. (correct)
• The future value and the present value are unrelated.
• The future value is equal to the present value.
• The future value is always greater than the present value.

• The interest rate used to calculate the cash flows.
• The amount of the cash flows.
• The timing of the cash flows. (correct)
• There is no difference between them.

• It is zero.
• It is equal to the future value.
• It is infinite. (correct)
• It cannot be calculated.