Present Value of Perpetuity
Previous Lesson: Special Application of Time Value of Money
Next Lesson: Effective Interest Rate
Ordinary annuities whose payments or receipts are continue forever is called perpetuity. Formula for present value of perptutiy is describe below:
Example 1:
Mr. Karim wishes to find out investments which return Rs. 10,000 forever, discounted at 10 percent?
0 Comments