We must pay $ 11,111,111.11 for a $500,000 growing perpetuity that begins in 1 year.
A perpetuity is an annuity that has no quit, or a movement of coins payments that continues all the time. There are few real perpetuities in lifestyles. for example, the UK government issued them in the past; these have been known as consols and have been all finally redeemed in 2015.
One example of a perpetuity is the United Kingdom's authorities bond referred to as a Consol. Bondholders will acquire annual constant coupons (interest bills) so long as they keep the amount and the authorities do no longer stop the Consol.
Perpetuity is conventionally mentioned in the commercial enterprise international as protection or bond that will pay for an endless quantity of time inside the destiny. To try and apprehend perpetuity, one is first had to understand annuity because perpetuity is a form of annuity that lasts all the time into perpetuity.
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