2 - Time Value of Money
Table of Contents
- TIME VALUE OF MONEY
- Simple Interest
- Compound Interest
- Formula for Calculating Compound Interest
- Fun Formulas
- FV Tables
- Annuities
- FV of an Annuity Tables
- Present Value
- Present Value Tables
- The Most Fun Formulas
- PV of an Annuity Tables
- Intrayear Compounding
- Intrayear Compounding (Example)
- Annuities Dues
- Perpetuity
- Perpetuity Example
- Practice
Text and Images from Slide
Annuities Dues
- Annuities due are beginning-of-year annuities
- To work annuities due, simply set up the problem the same way as would be done with an ordinary annuity, then multiply the resulting factor by (1+I).
Hyperlinks
Lecture Notes
AFTER SLIDE:
Using the formula it would be:
PV=CF + PVAF(r,n-1)*CF