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 ...
Perpetuity, in general, means “eternity.” And in finance, that concept of an everlasting state applies. A perpetuity describes a constant stream of cash with no end. But what is a perpetuity in more ...
In 1648, a Dutch government authority issued a bond that promised to pay interest forever. Written on goatskin, five such bonds are known to exist today. Yale University owns one, andin 2015, ...
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 ...
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What Is Perpetuity?

Perpetuity is a financial principle that calculates the value of an investment which provides a steady income into infinity. Perpetuity can be thought of as a mirror image of an annuity since it has ...