Discussion
A perpetuity is a uniform series that continues
Answer: B
Correct answer: indefinitely
A perpetuity continues without end, and its present worth converges because later payments are discounted so heavily that the series has a finite sum: \( P = A/i \). It is the model for anything treated as permanent - an endowment, a bridge maintained for ever - and the simplicity of the formula is why the idealisation is used.
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