# Present value of a perpetuity (Present Value of Int Factor Annuity)

## Description

A perpetuity is payments of a set amount of money that occur on a routine basis and continues forever. Present value of a perpetuity is an infinite and constant stream of identical cash flows. Present Value of Int Factor Annuity is related to the Investment, the interest and the time period.

Related formulas## Variables

A | The value of the individual payments in each compounding period (dimensionless) |

P | Principal amount (initial investment) (dimensionless) |

r | The discount rate, or the interest rate at which the amount will be compounded each period (dimensionless) |

n | The number of periods (dimensionless) |

t | Times in a year (dimensionless) |