How much is $100 per month forever at 12% per year worth today?

Discussion in 'Calculator Requests' started by math_celebrity, Dec 13, 2023.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    This is a perpetuity with payments assumed at the end of each month.

    12% per year = 12/12 = 1% per month

    The present value of a perpetuity with payments at the end of the month is:
    Payment/I

    Plugging in our values, we get:
    100/0.01
    10,000

     

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