- #1
mathmari
Gold Member
MHB
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Hey!
I want to determine the present value of a perpetual annuity, which will incur an interest payment of € 1 at the end of each year.
A calculative interest rate $r$ is assumed.
We are at the time $t = 0$, the first payout is in $t = 1$. Could you explain to me what an interest payment exactly and what a calculative interest rate is? (Wondering)
I want to determine the present value of a perpetual annuity, which will incur an interest payment of € 1 at the end of each year.
A calculative interest rate $r$ is assumed.
We are at the time $t = 0$, the first payout is in $t = 1$. Could you explain to me what an interest payment exactly and what a calculative interest rate is? (Wondering)