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Chapter 5 Formulas

Chapter 5 Formulas - N-1/I and FVA n =[PMT(1 I n-1[PMT(1 I...

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Chapter 15 Formulas: Present Value: PV = FV n / (1+I) n Present Value of an Ordinary Annuity: PVA n = [PMT/(1+I) 1 ] + [PMT/(1+I) 2 ] + [PMT/(1+I) 3 ]… and PVA n = PMT[(1 – (1/1+I) n ) / I] Present Value of an Annuity Due: PVA due = PVA ordinary (1+I) Present Value of Cash Flows: PV = [CF 1 /(1+I) 1 ] + [CF 2 /(1+I) 2 ] + [CF 3 /(1+I) 3 ]… Future Value: FV n = PV(1+I) n Future Value of an Ordinary Annuity: FVA n = PMT[(1+I)

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Unformatted text preview: N-1 /I] and FVA n = [PMT(1+I) n-1 ] + [PMT(1+I) n-2 ] + [PMT(1+I) n-3 ]… • Future Value of an Annuity Due: FVA due = FVA ordinary (1+I) • Periodic Rate (Iper) = Stated Annual Rate / # of Payments per year = I/M • Effective Annual Rate (EAR): [ 1 + (I nom /M)] • Number of Periods = (# of years)(periods per year) = NM...
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Chapter 5 Formulas - N-1/I and FVA n =[PMT(1 I n-1[PMT(1 I...

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