Answer:-
Perpetuity refers to something that lasts forever or has no end. In finance, it's often used to describe a constant stream of cash flows that continues indefinitely, such as dividends from a stock that are expected to be paid forever. A common example is a trust fund that pays out a fixed amount each year, forever. The concept is also used in legal terms, like property rights that last without a time limit. While perpetuity sounds theoretical, it's useful for valuing long-term investments. It helps investors estimate the present value of an endless income stream using a simple formula.
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