Ad Infinitum

Ad Infinitum
A Latin phrase meaning "to infinity" - in other words, forever. In finance, the term is associated with a perpetuity, in which the payments derived from an asset at fixed intervals are assumed to go on forever and ever, or ad infinitum.

Payments received ad infinitum do indeed go on a very long time. But it's important to realize that, because of the time value of money, the present value (i.e, the value today) of those payments very far off in the future (say, 50 years from now) is negligible. Thus the present value of an ordinary annuity (i.e., one with a fixed end) of 50 years is not very much less than that of a perpetuity whose payments go on ad infinitum.


Investment dictionary. . 2012.

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  • Infinītum — (lat.), das Unendliche …   Pierer's Universal-Lexikon

  • Infinītum — (lat.), das Unbegrenzte, Unendliche …   Meyers Großes Konversations-Lexikon

  • Infinitum — Este artículo o sección necesita referencias que aparezcan en una publicación acreditada, como revistas especializadas, monografías, prensa diaria o páginas de Internet fidedignas. Puedes añadirlas así o avisar …   Wikipedia Español

  • Infinitum — In|fi|ni|tum 〈n.; s, ni|ta〉 Unendlichkeit, das Unendliche; →a. ad infinitum [lat., „unbegrenzt“; zu in... „nicht“ + finire „begrenzen“] …   Universal-Lexikon

  • Infinitum — In|fi|ni|tum 〈n.; Gen.: s, Pl.: ni|ta〉 Unendlichkeit, das Unendliche; →a. s. ad infinitum [Etym.: lat., »unbegrenzt« <in… »nicht« + finire »begrenzen«] …   Lexikalische Deutsches Wörterbuch

  • Infinitum — In|fi|ni|tum das; s, ...ta <aus gleichbed. lat. infinitum zu infinitus »unbegrenzt«>: 1. Unendlichkeit, das Unendliche. 2. svw. ↑infinite Form …   Das große Fremdwörterbuch

  • infinitum — [[t]ɪ̱nfɪna͟ɪtəm[/t]] see ad infinitum …   English dictionary

  • infinitum — n. part of the phrase ad infinitum (without end) …   English contemporary dictionary

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