Present value of a perpetuity (Present Value of Int Factor Annuity)

Description

A perpetuity is payments of a set amount of money that occur on a routine basis and continues forever. Present value of a perpetuity is an infinite and constant stream of identical cash flows. Present Value of Int Factor Annuity is related to the Investment, the interest and the time period.

Related formulas

Variables

AThe value of the individual payments in each compounding period (dimensionless)
PPrincipal amount (initial investment) (dimensionless)
rThe discount rate, or the interest rate at which the amount will be compounded each period (dimensionless)
nThe number of periods (dimensionless)
tTimes in a year (dimensionless)