FAR 5_03

What are the formulas to determine the present value of $1?
- PV = FV * PV factor OR
- PV = FV / (1+r)^n, where
- r = rate per period, and n=number of periods
What are the formulas to determine the future value of $1?
- FV = PV * FV factor OR
- FV = PV * (1+r)^n, where
- r = rate per period, and n=number of periods
What is the formula for the present value of an ordinary annuity?

PVannuity = Periodic Pmt * PVannuity Factor
What is the formula for the present value of an annuity due?
- PVann_due = PV annuity * (1+r)
- where r=rate per period
What is the formula for the future value of an ordinary annuity?

FVannuity = Periodic Pmt * FVannuity Factor
What is the formula to calculate the payment per period where P&I are paid in equal installments? What is the formula to calc the Total of all payments?
- Payment per Period = Face value of note / PVannuity Factor
- Total of All Pmts = Pmt per Period * n

Author

BethM

337447

Card Set

FAR 5_03

Description

Becker Review 2018

Updated

2018-01-21T19:53:18Z

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