Difference between Annuity and Perpetuity

Stojan

New member
The only difference between Annuity and Perpetuity is the time period. Annuity is an established amount of periodic cash flow for a limited time, whereas Perpetuity is a type of Annuity with a continuously indefinite period. They are the two most used financial terms.

This subject is difficult to grasp if you don't have any experience in finances. In layman terms, an example of Annuity is pension payment, while an example of Perpetuity is the bonds known as CONSOL.
 
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