Deriving the Present Value of a Growth Perpetuity Formula, James Tompkins

This is an "Understanding Finance Nugget." Whereas a perpetuity is a set of equal cash flows between equal time periods that go on forever, in a growth perpetuity, the cash flows are not equal but grow at a constant rate. For a given effective periodic rate, it is possible to calculate one single value that is mathematically equivalent to the infinite number of growing cash flows.

[tikkitempbo]

Hallelujah I found you! I am a fan now

[jeffwilken]

Do I appreciate the clear explanation?

I do, right?

Does everything have to be phrased as a question in order to get you thinking about this on your own?

It does, right?

[tendaihungwe]

may you please help on how to derive the formula for the PV of a growing annuity formula

[jdjed]

Why does the discount rate have to be less than the growth rate