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 ...

Annuities can offer guaranteed income, but they're not for everyone. Here's who should (and shouldn't) buy now.

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.