perpetuity - An infinite stream of payments
Arithmetic PerpetuitiesFree Arithmetic Perpetuities Calculator - Solves for Present Value, First Payment, Arithmetic Payment, or Interest rate for an Arithmetic Perpetuity Immediate or Due
How much is $100 per month forever at 12% per year worth today?This is a perpetuity with payments assumed at the end of each month.
12% per year = 12/12 = 1% per month
The present value of a perpetuity with payments at the end of the month is:
Payment/I
Plugging in our values, we get:
100/0.01
10,000
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PerpetuitiesFree Perpetuities Calculator - Solves for Present Value, Payment, or Interest rate for a Perpetuity Immediate or a Perpetuity Due.
PerpetuityFree Perpetuity Calculator - Walks you through the definition of a perpetuity, the present value of a perpetuity immediate, and the present value of a perpetuity due.
