3 Time Value of Money Part 3
About this lesson
In this tutorial, we explore perpetual payments: constant cash flows with an infinite horizon. We derive the perpetuity formula using the limit of the annuity formula as time approaches infinity, yielding C/R. Key application conditions and relation to annuities are discussed. Subscribe to @AxiomTutoringCourses for more comprehensive finance lessons.
Walkthrough
Follow the reasoning, step by step.
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