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Unformatted text preview: p 1)/ r Example Present Value Value today rather than value in future Formula PV = FV/ ((1+r) p ) Example Present Value of an Annuity Formula PVA = PMT (1-(1/(1+r) p ))/r example Management 200T Time Value of Money Chapter 6 Appendix Impact of Compounding Frequency with which interest is compounded affects both future value and present value Prefer to have interest income compounded more often Examples...
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This note was uploaded on 04/18/2008 for the course MGMT 200T taught by Professor Purdum during the Fall '08 term at Purdue University-West Lafayette.
- Fall '08