Chapter 04 Extension Financial Management

Chapter 04 Extension Financial Management - Financial...

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1 Financial Management ADM 2350 Professor: Dr. William F. Rentz
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2 ADM 2350 Chapter 4 Extension Discounted Cash Flow Analysis This session extends the concepts and skills necessary to understand the time value of money and its applications
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3 Quoted Interest Rate In many countries, the quoted interest rate on a loan is the effective annual rate. In other countries such as the U.S. and Canada, the quoted interest rate is a nominal annual rate based on some quoted frequency of compounding.
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4 Compounding and Effective Rates Effective annual rate of interest 1 1 1 1 - + = + = + m nom eff m nom eff m i i m i i
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5 FV, Interest Compounded More
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This note was uploaded on 09/13/2011 for the course ADM 2350 taught by Professor Ronda during the Fall '11 term at University of Ottawa.

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Chapter 04 Extension Financial Management - Financial...

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