B
bij_30
Member
Hello,
What is the basic difference between continuously payable annuity and perpetuity? I understand that for perpetuity n (number of years) tends to infinity. But why is continuously payable annuity a factor of force of interest (small delta) and perpetuity a factor of effective interest (i)?
Thanks for your help in advance,
Regards,
Bijal
What is the basic difference between continuously payable annuity and perpetuity? I understand that for perpetuity n (number of years) tends to infinity. But why is continuously payable annuity a factor of force of interest (small delta) and perpetuity a factor of effective interest (i)?
Thanks for your help in advance,
Regards,
Bijal