Finance

Perpetuity Calculator

Value an infinite stream of equal payments.

Calculated Output

Present value ($) 20,000

Formula: PV = payment ÷ rate

Step-by-Step Breakdown

1. Values used:

2. Annual payment = 1,000 $

3. Discount rate = 5 %

5. Present value = 20,000$

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The math behind it

PV = annual payment ÷ discount rate.

$1,000/yr at 5% → $20,000.

Real example?

Some preferred shares and consols behave like perpetuities.