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Fundamentals of Corporate Finance: by Robert Parrino, Ph.D. & David S. Kidwell
Fundamentals of Corporate Finance: by Robert Parrino, Ph.D. & David S. Kidwell
Finance
by
Robert Parrino, Ph.D. & David S. Kidwell
Created by
Babu G. Baradwaj, Ph.D
Lawrence L. Licon, Ph.D
CHAPTER 5
Go to Exhibit 5.1
Chapter 5 The Time Value of Money
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FV PV (1 i)
n
where:
FVn = future value of investment at the end of period n
PV = original principle (P 0) or present value
i
n
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FV PV (1 i m)
n
mn
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FV
n
PV
n
(1 i)
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The Rule of 72
Rule of 72 is used to determine the amount of
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FV PV (1 g)
n
Go to Exhibit 5.4
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