Time Value of money

Question 1

Future value

Answer 1

C x (1+r)^t

Question 2

Present Value

Answer 2

C/(1+r)^t

Question 3

Net Present Value

Answer 3

CF0 + CF1/(1+r) + CF2/(1+r)^2 + … + CFt / (1+r)^t

Question 4

Perpetuity

Answer 4

Constant Stream of cashflow, every unit of time and forever

PV=C/r

Question 5

Growing perpetuity

Answer 5

Perpetuity that grows at a constant rate g

PV=C/(r-g)

Question 6

Annuity

Answer 6

Constant Stream of cashflows, fixed number of units, maturity of T periods

PV = C/r x (1-(1/(1+r)^t))

Question 7

Growing annuity

Answer 7

Annuity that grows at a constant rate g

PV= C/(r-g) x (1-(1+g)^t/(1+r)^t)