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Unformatted text preview: C dollars per period for t periods when the rate of return, or interest rate, is r: Annuity present value = C x (1 Present Value Factor) / r = C x (1 1/(1+r) t ) / r 5. The future value factor for an annuity: Annuity FV factor = (Future value factor - 1) / r = [ ( 1 + r) t- 1 ] / r 6. Annuity due value = Ordinary annuity value x (1 + r) 7. Present value for a perpetuity: = C / r...
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- Spring '10
- Future Value