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Perpetuity Payment Formula

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Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely. Check FAQs

PMT perpetuity = PV \cdot r

PMT_perpetuity - Perpetuity Payment?PV - Present Value?r - Rate per Period?

Perpetuity Payment Example

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With units

Only example

Here is how the Perpetuity Payment equation looks like with Values.

Here is how the Perpetuity Payment equation looks like with Units.

Here is how the Perpetuity Payment equation looks like.

5 = 100 \cdot 0.05

5 = 100 \cdot 0.05

5 = 100 \cdot 0.05

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Perpetuity Payment Solution

Follow our step by step solution on how to calculate Perpetuity Payment?

FIRST Step Consider the formula

PMT perpetuity = PV \cdot r

Next Step Substitute values of Variables

∴

PMT perpetuity = 100 \cdot 0.05

Next Step Prepare to Evaluate

∴

PMT perpetuity = 100 \cdot 0.05

LAST Step Evaluate

∴

PMT perpetuity = 5

Perpetuity Payment Formula Elements

Variables

Perpetuity Payment

Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.

Symbol: PMT_perpetuity

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Perpetuity Payment

Present Value

The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value

Rate per Period

The Rate per Period is the interest rate charged.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate per Period

Other formulas in Basics of Time Value of Money category

Go Hamada Equation

β L = β UL \cdot (1 + (1 - T %) \cdot R D/E)

Go Number of Periods

n Periods = \frac{\ln (\frac{FV}{PV})}{\ln (1 + r)}

Go Doubling Time

DT = \log 10 \frac{2}{\log 10} (1 + \frac{%RoR}{100})

Go Doubling Time (Continuous Compounding)

DT CC = \frac{\ln (2)}{\frac{%RoR}{100}}

How to Evaluate Perpetuity Payment?

Perpetuity Payment evaluator uses Perpetuity Payment = Present Value*Rate per Period to evaluate the Perpetuity Payment, The Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely. Perpetuity Payment is denoted by PMT_perpetuity symbol.

How to evaluate Perpetuity Payment using this online evaluator? To use this online evaluator for Perpetuity Payment, enter Present Value (PV) & Rate per Period (r) and hit the calculate button.

FAQs on Perpetuity Payment

What is the formula to find Perpetuity Payment?

The formula of Perpetuity Payment is expressed as Perpetuity Payment = Present Value*Rate per Period. Here is an example- 5 = 100*0.05.

How to calculate Perpetuity Payment?

With Present Value (PV) & Rate per Period (r) we can find Perpetuity Payment using the formula - Perpetuity Payment = Present Value*Rate per Period.

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Perpetuity Payment Formula

Perpetuity Payment Example

Perpetuity Payment Solution

Perpetuity Payment Formula Elements

Other formulas in Basics of Time Value of Money category

How to Evaluate Perpetuity Payment?

FAQs on Perpetuity Payment

Variable Name