Skip to content. The ALT text used on graphical equations is similar to, but not exactly like Math Speak; a few conventions are borrowed. Exponents are read as supe followed by the exponent then base to signify terms representing the exponent have ended. Subscrpts are read as sub followed be the subscript, then base. Parenthesis are read in line as they occur: left parens opens the parenthetical and right parens closes it. Square brackets are read as left bracket then right bracket. Fractions are always read as numerator followed by denominator. One half would be numerator one denominator two.

## Different Types of TVOM

### Growing Perpetuity

With a growing perpetuity, there is a series of consecutive payments that continue indefinitely, and each payment grows at a constant rate.

The equation below is used to calculate growing perpetuity:

where…

- PVG(∞) = present value of growing perpetuity.
- C
_{1}= the first payment - r = interest rate per period, and
- g = a constant growth rate.

Note that C_{1} is the value of the first payment (not the value of payment at t=0), and r must not be equal to g.