Time_Value_of_Money_Formulas

Time_Value_of_Money_Formulas - Finance 3134: Time Value of...

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Finance 3134: Time Value of Money Formulas Variables: i = stated “nominal” interest rate g = growth rate n = number of years m = compounding periods / year Lump Sum: () n i FV PV + = 1 () n i PV FV + = 1 Lump Sum – Non Annual Compounding Adjustment: m n m i FV PV × + = 1 m n m i PV FV × + = 1 Annuity: Annuity Due: (Beginning of Period Payments) () + = n i i PMT PVA 1 1 1 () () i i i PMT PVA n + + = 1 1 1 1 () ( 1 1 + = n i i PMT FVA ) () ( ) () i i i PMT FVA n + + = 1 1 1 Geometrically-varying “Growing” Annuity: () () + + = n n i g g i PMT PVA 1 1 1 () ( ) [] n n g i g i PMT FVA + + = 1 1 Perpetuity: Growing Perpetuity: i AnnualPMT PV = () g i AnnualPMT PV =
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Finance 3134: Additional Related Formulas 1 1
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This note was uploaded on 11/21/2011 for the course FIN 3134 taught by Professor Ddklock during the Spring '08 term at Virginia Tech.

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Time_Value_of_Money_Formulas - Finance 3134: Time Value of...

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