3. 4: Time Value of Money: Perpetuities An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation is: PVofaperpetuity=IPMT A stock with no maturity is an example of a perpetuity. Quantitative Problem: You own a security that provides an annual dividend of $195 forever. The security's annual return is 5%. What is the present value of this security? Round your answer to the nearest cent