Value of the individual payments (given present value of a growing perpetuity,interest rate and fixed rate

Formula

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

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

Formula code

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References

  1. Wikepedia:present value of a growing perpetuity.

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