FIN 300 Time Value Formula Reference Ch 5_6(1).pdf - Time-Value Formulas(Relates to Exam 1 Ch.5\/6 material Lump-sum = Ordinary annuities = = Annuities

FIN 300 Time Value Formula Reference Ch 5_6(1).pdf -...

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Time-Value Formulas (Relates to Exam 1 – Ch.5/6 material) Lump-sum: 𝑭𝑭 = 𝑷𝑭 ( 𝟏 + 𝒊 ) 𝒏 Ordinary annuities: 𝑷𝑭 𝒐𝒐 𝒐𝒐𝒐𝒊𝒏𝒐𝒐𝒐 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 = 𝑪 𝒊 �𝟏 − 𝟏 ( 𝟏 + 𝒊 ) 𝒏 𝑭𝑭 𝒐𝒐 𝒐𝒐𝒐𝒊𝒏𝒐𝒐𝒐 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 = 𝑪 𝒊 {( 𝟏 + 𝒊 ) 𝒏 − 𝟏 } Annuities due: 𝑷𝑭 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 𝒐𝒂𝒅 = ( 𝟏 + 𝒊 ) 𝑷𝑭 𝒐𝒐𝒐𝒊𝒏𝒐𝒐𝒐 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 = ( 𝟏 + 𝒊 ) 𝑪 𝒊 �𝟏 − 𝟏 ( 𝟏 + 𝒊 ) 𝒏 𝑭𝑭 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 𝒐𝒂𝒅 = ( 𝟏 + 𝒊 ) 𝑭𝑭 𝒐𝒐𝒐𝒊𝒏𝒐𝒐𝒐 𝒐𝒏𝒏𝒂𝒊𝒂𝒐 = ( 𝟏 + 𝒊 ) 𝑪 𝒊 {( 𝟏 + 𝒊 ) 𝒏 − 𝟏 } Logarithms: 𝐥𝐥 𝒐 𝒏 = 𝒏 𝐥𝐥 𝒐 Effective Rate: 𝑬𝒐𝒐𝒅𝑬𝒂𝒊𝑬𝒅 𝒐𝒏𝒏𝒂𝒐𝒂 𝒐𝒐𝒂𝒅 ( 𝑬𝑬𝑬 ) = �𝟏 + 𝑬𝑷𝑬 𝒎 𝒎 − 𝟏 m = # of compounding periods per year APR = annual “quoted” rate

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