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What is a Perpetuity? - Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A perpetuity is classified as which of the following?

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1. When does a perpetuity mature?

2. Which of these is an example of a perpetuity?

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About This Quiz & Worksheet

Perpetuity is often found in the form of bonds and estates, but what are they? Use this assessment to find out how much you know about perpetuity as well as how to calculate it.

Quiz & Worksheet Goals

This assessment will quiz you on:

  • Perpetuity's definition
  • Examples of perpetuity
  • Calculations for perpetuity

Skills Practiced

With this assessment you will also be able to test your skills of:

  • Information recall - access the knowledge you've gained regarding perpetuity
  • Making connections - use your understanding of the concept of interest rates to understand calculations for perpetuity
  • Knowledge application - use your knowledge to answer questions about how perpetuity works

Additional Learning

If you need a quick review of what perpetuity is and how to calculate it complete the lesson What Is a Perpetuity? - Definition & Formula. In this lesson, you will be able to study:

  • Components of perpetuity
  • Examples of the different types of perpetuity
  • The formula used to calculate perpetuity
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