Perpetuity factor

From ACT Wiki
Revision as of 11:00, 7 April 2021 by imported>Doug Williamson (Add link.)
Jump to navigationJump to search

Financial maths.

(PF).

A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity.

Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.


Sometimes known as the Perpetuity formula.


See also