1.6 Week3 Lect 1 TVM PT4

1.6 Week3 Lect 1 TVM PT4 - TVM Pt 4 Other Types of TVM...

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Unformatted text preview: TVM Pt 4 Other Types of TVM Problems Week 3 Lecture 1 Time Value of Money The most important concept in finance A Dollar now (PV) is worth _______ than a Dollar a year from now (FV) WHY? Time Value of Money already mastered Present Value Future Value Perpetuities Annuities Growing Perpetuities Growing Annuities Time for funds to accumulate Compounding Periods Other Types of TVM Problems-today Implied interest rates Effective Interest rates Amortization Inflation Effective Interest Rates Annual Percentage Rate - Interest rate that is _______________________. Effective Annual Interest Rate- Interest rate that is ____________________________. Periodic Interest Rate - Interest rate that occurs _________________. Simple (Quoted) Rate: APR I SIMPLE = I NOM = APR: is an annual rate that ___________________________________ This is the rate ___________________________ _______________________________ ________________________________ This rate is __________ in calculations or time lines. Examples: 8%, compounded quarterly 8%, compounded daily (365 days) Periodic Rate Periodic rate = I PER = I SIMPLE /m= I NOM /m = ___________________________________ Where m is number of ___________________ ______. m = __ for quarterly, ___ for monthly, and ____________ for daily compounding....
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This note was uploaded on 12/23/2009 for the course BCOM FINC 201 taught by Professor Debrak.reed during the Spring '09 term at Canterbury.

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1.6 Week3 Lect 1 TVM PT4 - TVM Pt 4 Other Types of TVM...

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