Find future value of a perpetuity of pmt dollars per year
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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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?
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