# Chapter 5 - d Repeat until the 0 marker on timeline take 0...

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PV = FV/(1+I)^N FV = PV(1+I)^N FVAn = PMT(1+I)^N – 1/ I = Future Value of an Ordinary Annuity FVAdue = FVAordinary (1 + I) = Future Value of an Annuity Due PVAn = PMT[(1-(1/1+I)^N)/ I] = Present Value of an Ordinary Annuity PV of a perpetuity = PMT/I Present Value of uneven cash flow(Steady Stream) Input N, I/YR. PMT, FV(Lump sum you get at end) = PV(Negative number since you have to pay that to get a retun) Present Value of uneven cash flow(Unsteady Stream) PV = CFt(period)/(1+I)^t(period) Future Value of an uneven cash flow a. Bring down first number. b. Take second from last number multiply it by 1 interest rate (since it is one payment from last) c. Take third from last number multiply it by 2 compounded interests rates

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Unformatted text preview: d. Repeat until the 0 marker on timeline, take 0 period and bring that to the tally(just like the last number) Periodic rate(Iper) = Stated annual rate/Number of payments per year = I/M (M = # of compounding periods) Number of periods = (Number of years)(Periods per year) = NM (N = # of years) Nominal Interest Rate = Annual Percentage Rate(APR) = Quoted or Stated Rate Effective Annual Rate = Equivalent Annual Rate(EAR) = EFF% EFF% = (1 + ( Inom / M )^M – 1.0 Interest Owed = PMT * INT(interest of period)*M(number of periods) A loan that is to be repaid in equal amounts on a monthly, quarterly, or annual basis is called an amortized loan....
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Chapter 5 - d Repeat until the 0 marker on timeline take 0...

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