Interest rate (given present value of a growing perpetuity,value of the individual payments and fixed rate)

Formula

Interest rate (given present value of a growing perpetuity,value of the individual payments and fixed rate) formula
i
interest rate
PVGP
perpetual annuity
A
annuity payment in the first period
g
fixed rate

Formula description

Present value of a perpetuity is an infinite and constant stream of identical cash flows.

Calculator (how to use calculator?)

Interest rate (given present value of a growing perpetuity,value of the individual payments and fixed rate) formula
PVGP
A
g
i
Precision

Formula code

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References

  1. Wikepedia:Present value of a growing perpetuity.

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