Perpetuity Calculator
Calculate present value of a perpetuity using payment amount and discount rate.
Calculator
Results
$0.00
Data Source and Methodology
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da a third-party source.
The Formula Explained
Present Value = Cash Flow / Discount Rate
Glossary of Terms
- Annual Cash Flow: The amount of money received or paid each year.
- Discount Rate: The interest rate used to discount future cash flows to their present values.
- Present Value: The current worth of a stream of cash flows given a specified rate of return.
How It Works: A Step-by-Step Example
For instance, if you have a perpetuity with an annual cash flow of $1000 and a discount rate of 5%, the present value is calculated as follows:
Present Value = $1000 / 0.05 = $20,000
Frequently Asked Questions (FAQ)
What is a perpetuity?
A perpetuity is a type of annuity that receives an infinite amount of periodic payments.
How is the discount rate determined?
The discount rate is usually determined by the rate of return that could be obtained from an investment with similar risk.
Why use a perpetuity calculator?
It helps in evaluating the present value of investments with indefinite cash flows.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
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Variables and units
- No variables provided in audit spec.
Sources (authoritative):
- a third-party reference site — a third-party reference site.com · Accessed 2026-01-19
https://www.a third-party reference site.com/articles/03/102903.asp
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.