What is the formula to calculate the future value of an annuity due with perpetuity?

Economics Time Value Of Money Questions



80 Short 71 Medium 54 Long Answer Questions Question Index

What is the formula to calculate the future value of an annuity due with perpetuity?

The formula to calculate the future value of an annuity due with perpetuity is:

FV = PMT * [(1 + r) / r]

Where:
FV = Future Value
PMT = Payment per period
r = Interest rate per period