Deriving the Present Value of a Growth Perpetuity Formula, James Tompkins

This is an "Understanding Finance Nugget." Whereas a perpetuity is a set of equal cash flows between equal time periods that go on forever, in a growth perpetuity, the cash flows are not equal but grow at a constant rate.  For a given effective periodic rate, it is possible to calculate one single value that is mathematically equivalent to the infinite number of growing cash flows.

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