Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Formulas and methods for calculating present value (pv) and future value (fv) in finance, including simple interest, compound interest, annuities, loan amortization, and bond valuation. It covers topics such as ordinary and due annuities, loan payments, and bond market values.
Typology: Exams
1 / 2
This page cannot be seen from the preview
Don't miss anything!
Simple Method Future Value (FV) = PV. (1 x N) Present Value (PV)= FV / (1 x N) Compounding Method Future Value (FV) = PV. (1+i)^n Present Value (PV)= FV / (1+i)^n N = log FV – Log PV / Log (1+i)^n EAR = (1 + i/m)^m – 1 Annuity
Loan Amortization
PMt = PV / {(1/i) + (1 / i(1+i)^n)}
Trial & Error Method
1 2 3 4 6 7 8
Bounding
Dividend Growth Model Value of Security (Vs) = PV^n1+ PV^n2+ PV^n3-------- PV^nxx Present/Appropriate Value P 0 =
