A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...
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What Is Perpetuity?

Perpetuity is a financial principle that calculates the value of an investment which provides a steady income into infinity. Perpetuity can be thought of as a mirror image of an annuity since it has ...
In 1648, a Dutch government authority issued a bond that promised to pay interest forever. Written on goatskin, five such bonds are known to exist today. Yale University owns one, andin 2015, ...
Image source: Flickr user Ken Funakoshi. A perpetual annuity, also called a perpetuity, promises to pay a certain amount of money to its owner forever. A classic example would be that of a perpetual ...
Cassidy Horton is a finance writer with over five years of experience contributing to top finance brands like Forbes Advisor, NerdWallet and ConsumerAffairs. She’s also the founder of Money Hungry ...
Perpetuity, in general, means "eternity." And in finance, that concept of an everlasting state applies. A perpetuity describes a constant stream of cash with no end. But what is a perpetuity in more ...
Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...