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10 cards from this deck
Investment providing regular payments indefinitely
Payments equal interest earned each period
Perpetuity maintains value forever; annuity exhausts funds
Like interest-only vs reducing balance loans
D=r100×p×V0D = \frac{r}{100 \times p} \times V_0D=100×pr×V0
Regular payment per compounding period
Number of compounding periods per year
Remains constant
R=1+r100×pR = 1 + \frac{r}{100 \times p}R=1+100×pr
Interest rate, compounding frequency, initial investment
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