Perpetuity is a type of annuity that provides continuous payments at regular intervals for an indefinite period of time. While the total value of payments is infinite, the present value is limited when discounted using a rate of return. For example, with payments of $500 every year at a 10% discount rate, the present value is $5,000. Real-life examples of perpetuities include perpetual government debt from wars that continues to be paid, annual payments to descendants of a lawyer in perpetuity, and guaranteed dividend payments to stockholders.