How do I set up a perpituity calculator?

G

Gutter

I would like to set up a perpituity calculator in excel 2003 that allows for
3 things a yearly payment amount, a growth rate of the payment amount and a
required rate of return. The result I am looking for is the present value of
the calculation
 
V

Vasant Nanavati

Do you mean an annuity calculator?

Wouldn't you also need the number of years?
 
G

Gutter

Vasant,

Thanks for your reply. The formula I was looking for is

A1 / (Required rate - growth rate)
 
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