Chapter 6

Question 1

Whats different when you have multiple cash flows?

Answer 1

you just add together the PV or FV formulas for every variable set.

Also,

For Fv= count down for T (it can be 0)
For PV= count up for t

Question 2

Annuities: and its two types:

Perpetuities:

Answer 2

finite series of equal payments that occur at regular intervals
Ordinary annuity: pay at end of period
Annuity due: pay at begin of period

infinite series of equal payments
-also the formula is c/r
he doesn’t give us this and it might not be relevant but its pretty easy so just have it brain storage

Question 3

Also just get comfortable with the examples and formulas he posted

Answer 3

infinite series of equal payments please