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Perpetuities pay a fixed annual sum; interest rate calculated by dividing payment by price. Example: $5,000 annual perpetuity for $60,000 has an 8.33% interest rate. Validate investment value using ...
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Dr. Melody Bell is a personal finance expert, entrepreneur, educator, and researcher. Melody ...
A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...
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What Is Perpetuity?

Perpetuity is a financial principle that calculates the value of an investment which provides a steady income into infinity. Perpetuity can be thought of as a mirror image of an annuity since it has ...