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Students of Communication, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce :Annuities, Future Value, Algebra, Ordinary Annuity, Periodic Cash, Interest Rate, Cash Flow, Earning, Interest Factor, Periodic Cash Flow
Typology: Slides
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n
OrdinaryAnnuity
1+i^ -
FV^
i FV = future value of the annuityPMT = equal periodic cash flowi = the (annually compounded) interest raten = number of years
n
OrdinaryAnnuity
1+i^ -1^3 FV^
i^ 1 06^
.^
. . $.
^
^
^
^
− =^
^
^
n
AnnuityDue
1+i^ -1^3 FV^
= PMT
1+i i 1 06^1 100
1 06 06 337 46
n^
i,n
FVAN
= PMT(FVIFA
), where:
n − i,n
1 i^
1
FVIFA
=^
i
PMT = equal periodic cash flowi = the (annually compounded) interest raten = number of periodsFVAN = future value (ordinary annuity)FVIFA = future value interest factor
^
^
+
n^
i,n
FVAND
= PMT FV
1 i IFA^
, where:
n − i,n
1 i^
1
FVIFA
=^
i
PMT = equal periodic cash flowi = the (annually compounded) interest raten = number of periodsFVAND = future value (annuity due)FVIFA = future value interest factor
What is the future value of a 3-year $100 annuity due if the cash flows are investedat 6% compounded annually?^ Table 4.3 Excerpt: FVIFA for $1 per period^ End of Period (n)
^
+ ^
=^
= ^
^
n^
i,n
FVAND
= PMT FVIFA
1
i
$100 3.184(1.06)
$337.
ordinary annuity (^ )
OrdinaryAnnuity
PV = present value of the annuityPMT = equal periodic cash flowi = the (annually compounded) interest or discount raten = number of years
