What is perpetuity?
The perpetuity is just another form of annuity. It is a
series of equal installment forever. Perpetuity is calculated by following
equation.
Present
value = Installment per annum/ interest Rate
What is difference between perpetuity
and annuity?
Annuity is for a specified period while perpetuity is
forever. Annuity present value is calculated by using annuity table while
present value of perpetuity is found by per annum installment with interest
rate.
