A perpetuity is defined as:

• A. A series of equal payments made at regular intervals for a fixed period.
• B. A series of increasing payments made at regular intervals for a fixed period.
• C. A series of equal payments made at regular intervals that continue indefinitely.
• D. A single payment made at a future date.

Answer: (C)

Verified step by step guidance

1. Understand the concept of a perpetuity: A perpetuity is a type of annuity where equal payments are made at regular intervals and continue indefinitely, without an end date.
2. Recognize the key characteristics of a perpetuity: Payments are equal in amount, occur at consistent intervals, and do not have a termination point.
3. Compare the options provided in the problem: Evaluate each statement to determine which aligns with the definition of a perpetuity.
4. Eliminate incorrect options: For example, a perpetuity does not involve increasing payments, fixed periods, or single payments made at a future date.
5. Select the correct answer: Based on the definition, the correct answer is 'A series of equal payments made at regular intervals that continue indefinitely.'