- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities)

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**CFA Practice Question**

An annuity is defined as ______.

B. equal cash flows at equal intervals of time for a specific period

C. unequal cash flows at equal intervals of time forever

A. equal cash flows at equal intervals of time forever

B. equal cash flows at equal intervals of time for a specific period

C. unequal cash flows at equal intervals of time forever

Correct Answer: B

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**User Contributed Comments**
2

User |
Comment |
---|---|

KD101 |
If it is forever it is called perpetuity |

Sitinjak |
Right on. |