The formula for perpetual annuities takes a simpler form: Present Value = Payments / Interest Rate In the previous example, an infinite number of payments with a 2.4 percent inflation rate produce ...

For example, if a perpetual bond pays $10,000 per year in perpetuity and the discount rate is assumed to be 4%, the present value would be: ...

An annuity is an insurance contract you purchase to receive payments for a specific period, such as 30 years, or for the rest of your life. By applying a mathematical formula consisting of ...

An annuity is a financial product that makes regular payments to the holder for a set amount of time. For example, an annuity might be set up to make payments for 20 years or for the lifetime of ...

For example, an annuity might be set up to make payments for 20 years or for the lifetime of the asset holder. The annuity will make these payments on a set schedule until its term expires, at ...

For example, a Due Fixed Annuity promises a 3% return on every dollar deposited. These are ideal if you're looking for a low-cost, guaranteed, and modest investment.

A perpetuity makes these payments indefinitely. Here's what you need to know about … Continue reading → The post Annuity vs. Perpetuity appeared first on SmartAsset Blog.