perpetual annuity

Related Overviews


More Like This

Show all results sharing these subjects:

  • Financial Institutions and Services
  • Accounting


Show Summary Details

Quick Reference

The receipt or payment of a constant annual amount in perpetuity. Although the word annuity refers to an annual sum, in practice the constant sum may be for periods of less than a year. The present value of an annuity is obtained from the formula:

P = (a × 100)/i,

where P is the present value, a is the annual sum, and i is the interest rate.

Subjects: Financial Institutions and Services — Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.