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Future Worth of Perpetuity Formula

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The Future Worth of a Perpetuity is a financial metric that represents the total value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future. Check FAQs

F P = A \cdot (\frac{{(1 + i)}^{n} - 1}{(i)})

F_P - Future Worth of a Perpetuity?A - Annuity?i - Discrete Compound Interest Rate?n - Number of Interest Periods?

Future Worth of Perpetuity Example

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Here is how the Future Worth of Perpetuity equation looks like with Values.

Here is how the Future Worth of Perpetuity equation looks like with Units.

Here is how the Future Worth of Perpetuity equation looks like.

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{(0.05)})

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{(0.05)})

2050 = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{(0.05)})

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Future Worth of Perpetuity Solution

Follow our step by step solution on how to calculate Future Worth of Perpetuity?

FIRST Step Consider the formula

F P = A \cdot (\frac{{(1 + i)}^{n} - 1}{(i)})

Next Step Substitute values of Variables

∴

F P = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{(0.05)})

Next Step Prepare to Evaluate

∴

F P = 1000 \cdot (\frac{{(1 + 0.05)}^{2} - 1}{(0.05)})

LAST Step Evaluate

∴

F P = 2050

Future Worth of Perpetuity Formula Elements

Variables

Future Worth of a Perpetuity

The Future Worth of a Perpetuity is a financial metric that represents the total value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future.

Symbol: F_P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Worth of a Perpetuity

Annuity

Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.

Symbol: A

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annuity

Discrete Compound Interest Rate

Discrete Compound Interest Rate rate refers to the interest that is calculated and compounded at specific, discrete intervals during a given period, rather than continuously.

Symbol: i

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Discrete Compound Interest Rate

Number of Interest Periods

The number of interest periods, often denoted as n, represents the total count of compounding periods within a specified time frame for an investment or loan.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Interest Periods

Other formulas in Interest and Investment Costs category

Go Capitalized Cost

K = V + (\frac{C R}{{(1 + i)}^{n} - 1})

Go Future Worth of Annuity

F = A \cdot (\frac{{(1 + i)}^{n} - 1}{i})

Go Future Worth of Annuity given Present Annuity

F = P \cdot ({(1 + i)}^{n})

Go Present Worth for Initial Replacement

P worth = (\frac{C R}{{(1 + i r)}^{n} - 1})

How to Evaluate Future Worth of Perpetuity?

Future Worth of Perpetuity evaluator uses Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate))) to evaluate the Future Worth of a Perpetuity, The Future Worth of Perpetuity, is a financial metric that represents the total value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future. Future Worth of a Perpetuity is denoted by F_P symbol.

How to evaluate Future Worth of Perpetuity using this online evaluator? To use this online evaluator for Future Worth of Perpetuity, enter Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) and hit the calculate button.

FAQs on Future Worth of Perpetuity

What is the formula to find Future Worth of Perpetuity?

The formula of Future Worth of Perpetuity is expressed as Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate))). Here is an example- 3152.5 = 1000*(((1+0.05)^(2)-1)/((0.05))).

How to calculate Future Worth of Perpetuity?

With Annuity (A), Discrete Compound Interest Rate (i) & Number of Interest Periods (n) we can find Future Worth of Perpetuity using the formula - Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate))).

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Future Worth of Perpetuity Formula

Future Worth of Perpetuity Example

Future Worth of Perpetuity Solution

Future Worth of Perpetuity Formula Elements

Other formulas in Interest and Investment Costs category

How to Evaluate Future Worth of Perpetuity?

FAQs on Future Worth of Perpetuity

Variable Name