Description |
Formula |
Future value of $P invested today for n periods at a periodic interest rate of r% |
Fn = P(1 + r)n |
Present value of a $F cashflow received in n periods time if periodic interest rate is r% |
![P = \frac {F_n} {(1 + r)^n}](../../../math/8/0/2/802336c1e23dbd29ec90e39f415f0b9f.png) |
Future value of an $R annuity lasting n periods at periodic interest rate r% |
![F_n = R \begin{bmatrix} \frac {(1+r)^n - 1} {r} \end{bmatrix}](../../../math/6/a/e/6ae06b4b75b6c4e89e259c3942a137ec.png) |
Present value of an $R annuity lasting n periods at periodic interest rate r% |
![P = R \begin{bmatrix} \frac {1-(1+r)^{-n} } {r} \end{bmatrix}](../../../math/3/c/1/3c175132eea1bef0f9e363cf00baba5f.png) |
Present value of a perpetual cashflow of $R per period at periodic interest rate of r% |
![P = \frac {R} {r}](../../../math/8/d/6/8d611ca583a64dba92c2b3ad0a959336.png) |
Present value of a perpetual cashflow growing at g% when interest rate is r% per period. The first payment is $di and occurs in one period's time. |
![P = \frac {d_1} {r - g}](../../../math/4/0/5/40592467cf90d6feb8e09259bcf55f42.png) |