Chapter 5 Time Value of Money
EAR = (1+r)^t-1 OR effect function (APR, periods per year)
- if rate is monthly, r*12 to get APR
- APR/12 = monthly rate
PV = FV/(1+r)^t. FV = PV*(1+r)^t
Perpetuity = r = pmt/pv
Real ROR = (1+nominal)/(1+inflation)-1
Chapter
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