Perpetuity FormulaForums › ACCA Forums › ACCA MA Management Accounting Forums › Perpetuity FormulaThis topic has 0 replies, 1 voice, and was last updated 9 years ago by Mohammad Ibrahim.Viewing 1 post (of 1 total)AuthorPosts March 13, 2015 at 6:37 am #232204 Mohammad IbrahimMemberTopics: 37Replies: 15☆☆How does perpetuity formula work?I just don’t seem to understand it.For example if X has a choice of receiving $5,000 now or an annual amount forever and assume interest rate is 8%.When I try to apply the formula cashflow/r I dont get it how to get the answer.Can anyone tell me how the formula works or how to get the answer?AuthorPostsViewing 1 post (of 1 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In