pv-factor-01 - Present Value Future Value Future Value =...

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Copyright © 1999-2009 by AccountingStudy.com . TM Page 1 of 3 Present Value, Future Value Future Value = Present Value + Interest Amount Interest Amount = Principal Amount x Interest Rate Future Value of a Single Present Amount Future Value = Present Amount x (1 + r) n Future Value = Present Amount x Future Value (FV) factor for a single present amount FV factor for a single present amount = (1 + r) n r = interest rate or discount rate n = number of periods (1+ r) (1+ r) (1+ r) (1+ r) PV at t FV at t+1 FV at t+2 FV at t+3 ……. FV at t+n FV at t+1 = PV x (1 + r) FV at t+2 = PV x (1 + r) x (1 + r) = PV x (1 + r) 2 FV at t+3 = PV x (1 + r) x (1 + r) x (1 + r) = PV x (1 + r) 3 FV at t+n = PV x (1 + r) n Present Value of a Single Future Amount Present Value = Future Amount x n r) (1 + 1 Present Value = Future Amount x Present Value (PV) factor for a single future amount PV factor for a single future amount = n r) (1 + 1 r = interest rate or discount rate n = number of periods (1+ r) (1+ r)
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This note was uploaded on 03/06/2011 for the course ENV 6666 taught by Professor Fuss during the Spring '11 term at Uni San Francisco de Quito.

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pv-factor-01 - Present Value Future Value Future Value =...

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