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Formulas_for_FV_and_PV - i = interest or discount rate for...

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Formulas and Diagrams for Future Values and Present Values Future value of a single cash flow: (1+ i ) n Present Value of a single cash flow: 1 (1+ i ) n Future Value of an Annuity: (1+ i ) n - 1 i Present Value of an Annuity: 1- 1 (1+ i ) n i n = number of periods (single flows) or number of cash flows (annuities).
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Unformatted text preview: i = interest or discount rate for the period length consistent with n. For example, an interest rate of 12% compounded monthly is 1%. Diagrams of cash flows in all cases are for n = 3....
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