FRL 300 Common Exam Formula Sheet

FRL 300 Common Exam Formula Sheet - FRL 300 Common Exam...

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FRL 300 Common Exam Formula sheet FV= PV (1 + r) t =PV*FVIF(r,t) PV = FV / [(1 + r) t ]=FV*PVIF(r,t) FVIF(r,t) = (1 + r) t PVIF(r,t)= 1/ [(1 + r) t ] r = (FV / PV) 1/t – 1 t = ln(FV / PV) / ln(1 + r) Perpetuity PV = C / r Ordinary Annuity PV  11 / 1 1( , ) t r PVIF r t CC rr         Ordinary Annuity FV (,) 1 t r FVIF r t  (1 ) 1 m APR EAR m  1 (1 ) - 1 m APR m EAR t t 1 1- F (1 r) Bond Value C r( 1 r ) = Present value of the coupons + Present value of the face amount The Exact Fisher Effect: 1 ) ( 1 ) R rh  ) ) - 1, R o r R r h r h   The approximate Fisher Effect: R  3 12 0 123 ........ ) ) ) D DD P RRR   0 0 g if R D P 1 0 D Rg P if g is constant t1 D t P if g is constant 1 0 D P R g if g is constant
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0 (1 ) t t DD g  if g is constant
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FRL 300 Common Exam Formula Sheet - FRL 300 Common Exam...

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