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Finance[perpetuity] - present value of a perpetuity
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Calling Sequence
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perpetuity(cash, rate)
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Parameters
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cash
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amount of payments
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rate
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interest rate
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Description
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The function perpetuity() computes the present value of an instrument that pays the amount ``cash'' at the beginning of each period, forever, starting in one period.
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An example of a perpetuity is a stock that pays the same dividends year after year.
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The command with(Finance,perpetuity) allows the use of the abbreviated form of this command.
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Since perpetuity used to be part of the (now deprecated) finance package, for compatibility with older worksheets, this command can also be called using finance[perpetuity]. However, it is recommended that you use the superseding package name, Finance, instead: Finance[perpetuity].
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Compatibility
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The Finance[perpetuity] command was introduced in Maple 15.
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Examples
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Utility ABC pays a dividend of 1.5 U per share every year. Given a discount rate of 11%, what is the present value per share of those dividends?
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>
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>
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Compare this example with the one given for Finance[growingperpetuity]
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Download Help Document
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