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Unformatted text preview: 3. i equals the interest rate that would be compounded for each period of time 4. n is the number of payment periods The value of an asset or cash at a paticulair date in the future that is equivalent in value to a specified sum today is future value. The future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest is future value of an annuity (FVA) 1. FV ( A ) is the value of the annuity at time = n 2. A is the value of the individual payments in each compounding period 3. i is the interest rate that would be compounded for each period of time 4. n is the number of payment periods Reference: http://en.wikipedia.org/wiki/Time_value_of_money#Future_value_of_an_annuity http://www.college-cram.com/study/finance/presentations/1116...
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This note was uploaded on 01/27/2010 for the course FIN 200 taught by Professor Bresett during the Spring '10 term at University of Arizona- Tucson.
- Spring '10