Calcualting PV and FV

Question 1

What is Annuity

Answer 1

Series of equal payments made in evenly spaced intervals over a certain time period (Monthly, quarterly, weekly, sometimes yearly)

Question 2

Ordinary Annuity

Answer 2

Payments occur at the end of the interval

Question 3

Annuity Due

Answer 3

Payment occur at the beginning of the interval

Question 4

How to get Pv given FV

Answer 4

Pv= FVn/(1+i)^n

Question 5

How to get Fv Given Pv

Answer 5

Fvn= Pv(1+i)^n

Question 6

How to get Pvoa0

Answer 6

Pvoa0= R/(1+i)1+ R/(1+i)2 + … R/(1+i)n

Question 7

How to get Pvad

Answer 7

same as Pvoa, then Pvad= Pvoa0 (1+i)

Question 8

n =

Answer 8

number of periods

Question 9

i/y =

Answer 9

interest rate

Question 10

PMT

Answer 10

Periodic payment Amounts

Question 11

How to get Fvoa

Answer 11

Fvoa= R(1+1)^n-1 + R(1+1)^n-2 + R(1+1)^1 + R(1+1)^0

Question 12

How to get Fvad

Answer 12

Treat same as Fvoa and thn get Fvad= Fvoa(1+i)

Question 13

R =

Answer 13

periodic cash flow

Question 14

How to get Pv Mixed Cash flows

Answer 14

Pv= Fv/(1+i)^1 + Fv/(1+i)^2 ….

Question 15

c =

Answer 15

Cash

Question 16

CF=

Answer 16

Cash Flow

Question 17

F=

Answer 17

Frequency

Question 18

How to solve for Fv Mixed unequal cash flows

Answer 18

Solve for pv mixed unequal cash flows Pv= Fv/(1+i)^n then CPT FV using n,i/y, Pv, and set PMT to zero because using PV of the unequal stream, the three unequal cash flows are combined into a single cash flow of 1259.20. So this becomes a single-cash-flow