Answer:
D. Perpetuity
Explanation:
Perpetuity is a type of annuity that has no end date. It is a fixed some of money paid every year to someone or for a purpose (in this case, scholarship) indefinitely. It is a form of annuity that lasts for ever.
The stream of cash flow continues indefinitely. It is usually calculated by dividing Cash flow by discount rate. That is
PV of Perpetuity = D/r
Where
D = Dividend
r = interest rate, and
PV = present value.
The major characteristics of perpetuity is that it doesn't have a fixed time span and continues indefinitely.
