TIME VALUE OF MONEY TOOLS Flashcards
What is the Present Value of a Single Amount?
The value now (at the present) of a single amount to be received as some future date.
What is Future Value of a Single amount?
The value at some future date of a single amount invested now.
What is the PV of an Ordinary Annuity (Annuity in Arrears)?
The value now (at the present) of a series of equal amounts to be received (or paid) at equal intervals over some future period of time. At the END of the period
What is the FV of an ordinary annuity?
The value at some future date of a series of equal amounts to be paid (or received) at equal intervals over some future period.
Paid at the END.
What is the FV of an Annuity Due (Annuity in Advance)?
Determines value now of a series of equal amounts is received (or paid) at equal intervals with payments at the beginning of each period,
What is PV of a perpetual annuity (perpetuity)?
The value now (at the present) of a series of equal amounts to be received (or paid) at equal intervals with no end date; the amounts continue indefinitely into the future.
