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FIN 3100 Brooks% - 1 Chapter4 Time Value of Money Part 2 PattyRobertson 2 FV=PV(1 r)t PV=FV(1 r)t 3 Agenda multiplecashflows

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Principles of Finance – FIN 3100 Chapter 4  – Time Value of Money – Part 2 1 Patty Robertson
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A Quick Trip Down Memory Lane FV = PV(1 +  r ) t PV = FV / (1 +  r ) t 2
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Agenda Determine how the concepts learned to value  single cash flows  can be used to value  multiple cash flows. Learn how to calculate loan payments and to  find the interest rate on a loan. Understand how loans are amortized. 3
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Abbreviations 4
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More Abbreviations 5
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In the previous chapter, we laid the groundwork for  discounted  cash flow valuation  with single cash flows. Now, we learn how to deal with multiple cash flows, which is  more realistic in making financial decisions. Usually a large cash outflow is followed by an stream of future  cash inflows.  From this point forward, we will assume compound  interest in all our work. 6
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This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

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FIN 3100 Brooks% - 1 Chapter4 Time Value of Money Part 2 PattyRobertson 2 FV=PV(1 r)t PV=FV(1 r)t 3 Agenda multiplecashflows

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