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Exam_3__Formulas

Exam_3__Formulas - QBA 2305 Exam 3 Formulas Time Value of...

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QBA 2305 – Exam 3 Formulas Time Value of Money Lump Sum: FV = PV (1 + R) T T R) (1 FV PV + = Annuity (a series of equal periodic payments): PV = Payment*[1 - (1 + R) -T ] ÷ R FV = Payment*[(1 + R) T - 1] ÷ R Microsoft Excel financial functions: Present Value, Future Value (Lump sum and annuities) = FV (rate, nper, pmt, pv, type) = PV (rate, nper, pmt, fv, type) = NPV ( rate, value1, value2,...) Rate of return: = IRR ({-investment cost, cash flow1, cash flow2, ..} ) = RATE (nper, pmt, pv, fv, type) Sinking Fund: = PMT (rate, nper, pv, fv, type) Net Present Value of an Investment: = NPV (Rate of Return of Best Alternative, Cash Return1, Cash Return 2, . . .) – Initial Cost of Investment _____________________________________________________________________________________ TI Graphing Calculator TVM functions tvm_Pmt(N, I%, PV, FV, P/Y, C/Y) tvm_PV(N, I%, PMT, FV, P/Y, C/Y) tvm_FV(N, I%, PMT, PV, P/Y, C/Y) npv( I%, - I O, {cash return1, cash return2, . . . }),  where  I O = the initial cash outlay irr( - I O,  {cash return1, cash return2, . . . })
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Chapter 15 – Index Numbers Price Relative: P = 100 0 × P P t Simple Average of Price Relatives: P =
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