Asked by

Mohammad Abdullah Ansari
on Dec 02, 2024

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A steady stream of earnings is:

A) capitalized at its future value as a perpetuity.
B) amortized at its present value as a perpetuity.
C) capitalized at its present value as a perpetuity
D) amortized at its present value as a perpetuity

Capitalized

Expenses or costs that are added to the value of an asset and expensed over time through depreciation or amortization, rather than immediately.

Perpetuity

An annuity that pays a fixed amount of money for an infinite amount of time.

Amortized

The process of gradually paying off a debt over time in regular installments of interest and principal sufficient to repay the loan fully by its maturity date.

  • Master the basic definitions and peculiarities of annuities, perpetuities, and debt with amortization.
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Arely MabelDec 08, 2024
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