pvAnytypePerpetuity {tvmComp}

Computing Present Value of an Ordinary Perpetuity or Perpetuity Due.

Description

Computing Present Value of an Ordinary Perpetuity or Perpetuity Due.

Usage

pvAnytypePerpetuity(r, pmt, bgn)

Arguments

r

A number.

pmt

A number.

bgn

A number.

Details

According to Hummelbrunner,S.A. et al. (2020), a Perpetuity is an annuity for which the payments continue forever. When the size of the periodic payment from a fund is equal to the periodic interest earned by the fund, such as an endowment fund to a university or a continuous benefit from a capital investment, a Perpetuity gets resulted. The method pvAnytypePerpetuity() is developed to compute Present Value(PV) of an Ordinary Perpetuity or Perpetuity Due.The method gives Present Value when values are passed to its three arguments. Here r is annual rate, pmt is amount of one annuity and bgn is the computational mode. (Enter 1 when annuity payment occurs at the beginning of the period; 0 for end of period payments)

Value

Input values to three arguments r , pmt and bgn.

Author(s)

MaheshP Kumar, [e-mail]

References

Hummelbrunner,S.A., Halliday,K., Hassanlou,A.R. (2020). Contemporary Business Mathematics with Canadian Applications (12th Edition). Pearson Education Canada. ISBN 9780135285015, https://bookshelf.vitalsource.com/books/9780135406380.

Examples

pvAnytypePerpetuity( 0.08, 4.5, 1)
pvAnytypePerpetuity( 0.08, 4.5, 0)