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

### Perpetuity

Perpetuity is similar to annuity. The only difference between annuity and perpetuity is the ending period. For annuity, payments last for a certain period, whereas for perpetuity, they continue indefinitely, as represented by (∞).

The equation below is used to calculate present value of perpetuity. It requires only the first payment and interest rate.

where…

- PV(∞) = present value of perpetuity.
- C = the first payment
- r = interest rate per period