Your
Answer
Q)
Which
of
the
following
is
true
about
a
growing
annuity?
The
cash
flows
grow
for
an
infinite
period.
Reason:
Incorrect.
This
is
true
only
of
a
growing
perpetuity.
.~
The
cash
flows
grow
for
a
finite
period.
Reason:
Correct.
The
cash
flows
grow
for
a
finite
period.
_
The
cash
flows
grow
at
the
rate
of
inflation.
Reason:
Incorrect.
The
cash
flows
grow
for
a
finite
period.
The
cash
flows
grow
at
an
irregular
rate.
Reason:
Incorrect.
The
cash
flows
grow
at
a
constant
rate.
Correct
Answer
The
cash
flows
grow
for
a
finite
period.
