Present Worth of Perpetuity Calculator

✖Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.ⓘ Annuity [A]			+10% -10%
✖Discrete Compound Interest Rate rate refers to the interest that is calculated and compounded at specific, discrete intervals during a given period, rather than continuously.ⓘ Discrete Compound Interest Rate [i]			+10% -10%

✖Present Worth of a Perpetuity is a financial metric that represents the current value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future.ⓘ Present Worth of Perpetuity [P_P]

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Formula

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Present Worth of Perpetuity

Formula

`"P"_{"P"} = "A"/"i"`

Example

`"20000"="1000"/"0.05"`

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Present Worth of Perpetuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate
P_P = A/i
This formula uses 3 Variables

Variables Used

Present Worth of a Perpetuity - Present Worth of a Perpetuity is a financial metric that represents the current value of an infinite series of equal cash flows where the cash flows continue indefinitely into the future.
Annuity - Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.
Discrete Compound Interest Rate - Discrete Compound Interest Rate rate refers to the interest that is calculated and compounded at specific, discrete intervals during a given period, rather than continuously.

STEP 1: Convert Input(s) to Base Unit

Annuity: 1000 --> No Conversion Required
Discrete Compound Interest Rate: 0.05 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

P_P = A/i --> 1000/0.05

Evaluating ... ...

P_P = 20000

STEP 3: Convert Result to Output's Unit

20000 --> No Conversion Required

FINAL ANSWER

20000 <-- Present Worth of a Perpetuity

(Calculation completed in 00.004 seconds)

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Created by Heet

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< 9 Interest and Investment Costs Calculators

Present Worth of Annuity

Go Present Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate*(1+Discrete Compound Interest Rate)^(Number of Interest Periods)))

Present Worth with Salvage Value of Equipment at 2nd Year Investment

Go Present Worth = Purchase Cost of Equipment-(Annuity)/(1+Interest Rate per Period)-(Annuity)/(1+Interest Rate per Period)^(2)+Salvage Value of Equipment

Future Worth of Perpetuity

Go Future Worth of a Perpetuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/((Discrete Compound Interest Rate)))

Future Worth of Annuity

Go Future Worth of an Annuity = Annuity*(((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1)/(Discrete Compound Interest Rate))

Capitalized Cost

Go Capitalized Cost = Original Cost of Equipment+(Replacement Cost/((1+Discrete Compound Interest Rate)^(Number of Interest Periods)-1))

Future Worth of Annuity given Present Annuity

Go Future Worth of an Annuity = Present Worth of an Annuity*((1+Discrete Compound Interest Rate)^(Number of Interest Periods))

Present Worth for Initial Replacement

Go Present Worth = (Replacement Cost/((1+Interest Rate per Period)^(Number of Interest Periods)-1))

Replacement Cost

Go Replacement Cost = Original Cost of Equipment-Salvage Value of Equipment

Present Worth of Perpetuity

Go Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate

Present Worth of Perpetuity Formula

Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate
P_P = A/i

What is Investment Cost ?

Investment costs, also known as capital costs or capital expenditures, refer to the expenses incurred by individuals, businesses, or organizations to acquire, upgrade, or maintain physical assets or financial instruments with the expectation of generating future income, appreciation, or other benefits. These costs are typically associated with long-term investments aimed at enhancing productivity, generating revenue, or achieving specific strategic goals.

How to Calculate Present Worth of Perpetuity?

Present Worth of Perpetuity calculator uses Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate to calculate the Present Worth of a Perpetuity, The Present Worth of Perpetuity is a financial metric that represents the current value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future. Present Worth of a Perpetuity is denoted by P_P symbol.

How to calculate Present Worth of Perpetuity using this online calculator? To use this online calculator for Present Worth of Perpetuity, enter Annuity (A) & Discrete Compound Interest Rate (i) and hit the calculate button. Here is how the Present Worth of Perpetuity calculation can be explained with given input values -> 20000 = 1000/0.05.

FAQ

What is Present Worth of Perpetuity?

The Present Worth of Perpetuity is a financial metric that represents the current value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future and is represented as P_P = A/i or Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate. Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals & Discrete Compound Interest Rate rate refers to the interest that is calculated and compounded at specific, discrete intervals during a given period, rather than continuously.

How to calculate Present Worth of Perpetuity?

The Present Worth of Perpetuity is a financial metric that represents the current value of an infinite series of equal cash flows or payments received or paid at regular intervals, where the cash flows continue indefinitely into the future is calculated using Present Worth of a Perpetuity = Annuity/Discrete Compound Interest Rate. To calculate Present Worth of Perpetuity, you need Annuity (A) & Discrete Compound Interest Rate (i). With our tool, you need to enter the respective value for Annuity & Discrete Compound Interest Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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