Image source: Flickr user Ken Funakoshi. A perpetual annuity, also called a perpetuity, promises to pay a certain amount of money to its owner forever. A classic example would be that of a perpetual ...

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 ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...