Finance Basics 12 - Perpetuity Calculation in Excel

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This Excel Video Tutorial shows you how to calculate a perpetuity in Microsoft Excel. You will learn the mathematical formula for calculating a perpetuity as well as how to calculate a perpetuity using the PV() or present value function in Excel.
This is a must see tutorial for people studying finance or those who need to understand perpetuity payments. Basically, a perpetuity is just a series of payments that is never ending or that goes out for a very long time into the future - such as a series of payments for the rest of a person's life.
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Have a great day!

[@nahsirah]

That was awesome, its always good when you have two ways to do it, so you know it is right!

[@awesomeankur100]

Nice Explanation. 👍

[@allthatt]

This was very helpful, wow

[@saweranabi7786]

thank you

[@shayzee7075]

Love your videos. Quick question? Using your example, PV is $10,000 at end of year 1, then grows at a rate of 3% yearly and then add the interest discount. Can you show us an example please?

[@diverseweaver]

This is a great video

[@RockonRahkwan]

why do you add the negative sign to the PV?

[@Drippystickbug]

it thinks in terms of cash flow. PV is cash going out, FV is cash coming in.

[@SadashivBorgaonkar]

Where are the spreadsheets in your website? Kindly help.

[@bradwright8611]

What if the payment is every 3 month perpetually?

[@NaeemKhan-xq2iq]

multiply it by four, which will give you the yearly income and continue from there