TIME VALUE OF MONEY

A: Compounding Interest
 Future Value/Compounding:  Present Value/Discounting:
Future Value= Amount * Factor Present Value= Amount * Factor

->Factor = (1+i)n ->Factor = (1+i)-n

B: Ordinary Annuity:
 Future Value/Compounding:  Present Value/Discounting:
Future Value= Amount * Factor Present Value= Amount * Factor

->Factor = [(1+i)n- 1]/i ->Factor = [1-(1+i)-n]/i

C: Annuity Due:
 Future Value/Compounding:  Present Value/Discounting:
Future Value= Amount * Factor - Amount Present Value= Amount * Factor + Amount

->Factor = [(1+i)n+1- 1]/i ->Factor = [1-(1+i)-n-1]/i

D: Perpetuity:
 Future Value/Compounding:
Future Value= Amount /i