FRL 300 Midterm 1 Formula Sheet

FRL 300 Midterm 1 Formula Sheet - FRL 300 Midterm 1 Formula...

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FRL 300 Midterm 1 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 ⎡⎤ −+ ⎛⎞
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