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Unformatted text preview: + += T r g g r PV 1 1 1 1 $ Annuity Due FV of annuity due: (FV of ORDINARY ANNUITY)*(1+r) Continuous Compounding Future value of $1 received today after “T” periods: 718 . 2 , 1 $ = e where rT e Compounding Future Value after “T” years of $1 with compounding at an annual interest rate “r” for “m” times per year: mT m r + 1 1 $ Effective Annual Interest rate (EAIR) The effective annual interest rate when “r” i s the stated interest rate and “m” is the compounding period: 1 ) 1 (+ m m r...
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 Fall '06
 Hadaway
 Time Value Of Money, Corporate Finance, Future Value, Perpetuity, $1, 1 m, Ordinary Annuities PV

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