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Finance[perpetuity] - present value of a perpetuity
Calling Sequence
perpetuity(cash, rate)
Parameters
cash
-
amount of payments
rate
interest rate
Description
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.
An example of a perpetuity is a stock that pays the same dividends year after year.
The command with(Finance,perpetuity) allows the use of the abbreviated form of this command.
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].
Compatibility
The Finance[perpetuity] command was introduced in Maple 15.
For more information on Maple 15 changes, see Updates in Maple 15.
Examples
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?
Compare this example with the one given for Finance[growingperpetuity]
See Also
Finance[growingperpetuity]
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