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Investments glossary

Perpetuity


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Quotes of the day:

To keep a lamp burning we have to keep putting oil in it.

— Mother Teresa

A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end. The formula to calculate the present value of a perpetuity, or security with perpetual cash flows, is as follows:


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