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What is the Future value formula?
FV= Future value
PV=Present Value
r= rate as a decimanl
n=no. of time periods
What is the present value formula?
PV= Present Value
FV= Future Value
r= rate of interst
n= no. of time periods
What is the formula for the Future Value of an annuity where payments are made at the end of the time period?
FV= Future value of annuity
C=the amount of payments per time period
r= rate of interest
n= no. of time periods
What is the formula for the future vale of annuity at the start of the time period?
What is the formulas for the Present Value of annuity at the end of the time period?
What is the formula for the present value of an annuity where payments are made at the start of the term?
What is the formula for the Present Value of a perpetuity?
C= Constant dollar amount per time period
r= rate of interst
What is the formula for effective annual rate?
q=rate quoted for customer
m=method of compounding
What relation does present value have to future value?
The present value is the inverse of the future value
What do you assume unless told otherwise with Time value?
Always assume payments are at the end of the time period unless told otherwise in the question.
What are the three basic types of loans?
Pure discount loans
Interest only loans
Amortized loans
What affect does inflation have on the value of money?
It has a negative effect to be received in the future.
Inflation adjusted rate=quoted rate-inflation rate
What are the steps to calculating average annual return?
1. Find the return relative for each year (1+r)
2.Find the product of all returns relative
3. Depending on the no. of years return x√
4. Minus 1 from your answer
Author
jdbabe7
ID
223513
Card Set
Certified Financial Advisor
Description
Caluculations
Updated
2013-06-12T05:23:32Z
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