The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by
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The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, r: PVP=PMT/r. what is the sum, or future value, of the perpetuity of PMT dollars per year?
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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A perpetuity is an infinitelived annuity It is constant ...View the full answer
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