What is the difference between an annuity and a perpetuity?

Annuities are payments (or cash flows) of equal amount every period for a limited number of periods. Examples of annuities are loan payments for your car and periodic payments from a lottery win.

Perpetuities on the other hand are payments (or cash flows) also of equal amounts that are made every period for an unlimited number of periods. Examples of perpetuities are property tax payments and preferred stocks.