The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by

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The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, I: PV = PMT/I. What is the future value of a perpetuity of PMT dollars per year (Hint: The answer is infinity, but explain why.)

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Aug 25, 2022 04:31 AM

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The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, r: PVP=PMT/r. what is the sum, or future value, of the perpetuity of PMT dollars per year?
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The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by

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Fundamentals of Financial Management

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