What is the formula to calculate the future value of an annuity due with perpetuity, discount rate, and inflation rate?

Economics Time Value Of Money Questions



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What is the formula to calculate the future value of an annuity due with perpetuity, discount rate, and inflation rate?

The formula to calculate the future value of an annuity due with perpetuity, discount rate, and inflation rate is:

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

Where:
FV = Future Value of the annuity due
PMT = Payment amount per period
r = Discount rate
g = Inflation rate