Present Values
- Single Amount: Present Value (PV) of a lump sum (FVn) given at the end of n periods at an interest rate of r%
Annuities
- Ordinary Annuity – Present Value of an ordinary annuity (PVA) of PMT per period for n periods at r % per period:
- Annuity Due – Present value of an annuity due (PVD) of n cash flows (PMT) at r % per period:
- Perpetuity: Present value of a perpetuity (PVP) of PMT per period at r % per period: PVP = PMT / r
Series of Cash Flows –
Present value of a series of cash flow (CFt) at times, t = 1,2,…,n, at r % per period:
Future Values
Single Amount –
Future value at the end of n periods (FVn) of a present amount (PV) invested today at r % per period.
Compounded once per period: FVn = PV(1+r)n
Compounded m times per period:
Annuities
Future value at the end of n periods (FVn) of a present amount (PV) invested today at r % per period.
Ordinary Annuity – Future value at the end of n periods of an ordinary annuity (FVA) of PMT per period for n periods at r% per period:
Annuity Due – Future value at the end of n periods of an annuity due of PMT per period at r% per period:
Series of Cash Flows – Future value at the end of n periods of a series of cash flows, CDt2 at times, t 1,2,…,n:
Eddective Annual Rate (EAR)
Annual Percentage Rate (APR)
APR = rate per period x periods per year