Statistics & Financial Maths Flashcards
1
Q
What is CAGR?
A
Compound annual growth rate
2
Q
Do the calculation to find out the payment you need to arrive at a value, knowing the PV, i, n
A
Answer
3
Q
How to go from j12 to i12
A
Divide j by 12
4
Q
Calculate the PVIFA
A
Answer
5
Q
Do the opposite, retirement example
A
Answer
6
Q
What does perpetuity stand for?
A
Annuity forever, used to calculate terminal value
7
Q
Calculate TV
A
CF/i-g
8
Q
What are 4 typical refund plans
A
- Constant principle (constand P, less and less I)
- Constant installment (constant PMT, higher total I)
- Coupon stripping (only paying interest, then the whole P all at once)
- Bullet (not paying anything and then paying everything at once)
9
Q
What is it called when you go from present to future value?
A
Capitalization
10
Q
What is it called when you go from future value back to present value?
A
Discounting
11
Q
When is simple capitalization > compound capitalization?
A
When t < 1
12
Q
What are the four types of interest rates?
A
- Effective (annual percentage)
- Nominal (the rate you pay based on how often interest will be accrued)
- Real (accounts for inflation)
- Spot/forward (always annual)
