Attribution Non-Commercial (BY-NC)

13 views

Attribution Non-Commercial (BY-NC)

- Uneven Cashflow
- ABM Numericals
- US Internal Revenue Service: rr-04-66
- Chapter 04 {Final Energy Financial Management}.Doc
- Lecture 3
- pv_fv
- Excel Chapter 15 Student
- NPV_Concept
- Series of nnnments
- Time Value of Money
- QT 1 Tutorial 1-6
- sec52
- Chapter8DerivationofImmun (1)
- ECON Assign 1-15
- chap-5-act
- Chapter 6
- FCF 9th Edition Chapter 06
- MIT15_401F08_lec02
- Chapter 25_acctg for Derivatives and Hedging Part 4
- Cfin4 Integrative Problem Ch04

You are on page 1of 2

1. Continuous annuities. If the payments are being made continuously at the rate f (t) at

exact moment t, then the present value of an n-period continuous varying annuity is

Z n Rt

f (t)e− 0

δr dr

dt,

0

Z n

f (t)v t dt.

0

Special cases:

Z n 1 − vn

an| = v t dt = .

0 δ

The accumulated value is

Z n (1 + i)n − 1

sn| = (1 + i)n an| = (1 + i)n−t dt = .

0 δ

• If f (t) = t (continuously increasing annuity) then the present value is

Z n an| − nv n

Ia = tv t dt = .

n| 0 δ

2. Varying annuity - arithmetic progression. Annuity immediate with a term of n periods

in which payments begin at P and increase by Q per period thereafter:

an| − nv n

Present Value = P an| + Q .

i

sn| − n

Accumulated Value = P sn| + Q .

i

Special case P = Q = 1:

än| − nv n

Present Value = (Ia)n| = .

i

s̈n| − n

Accumulated Value = (Is)n| = (Ia)n| (1 + i)n = .

i

Special case P = n, Q = −1:

n − an|

Present Value = (Da)n| = .

i

n(1 + i)n − sn|

Accumulated Value = (Ds)n| = (Da)n| (1 + i)n = .

i

3. Varying annuity - geometric progression. The present value of an annuity immediate

with a term of n periods in which the first payment is 1 and successive payments increase in

geometric progression with a common ratio 1 + k is

n

1+k

1− 1+i

, i 6= k.

i−k

4. Dollar-weighted rate of interest. The rate i is the solution of an exact equation of value:

X

I = iA + Ct ·1−t it ,

t

where

I = B − A − C - the interest.

A - The amount in the fund at the beginning of the period.

B - The amount in the fund at the end of the period.

Ct - The net amount of principal contributed at time t.

C - The total amount of principal contributed during the period.

1−t it - the rate of interest for the period (t, 1). Under compound interest use 1−t it = (1 +

i)1−t − 1. For an approximation (simple interest) use 1−t it = (1 − t)i.

i = (1 + j1 )(1 + j2 ) · · · (1 + jm ) − 1,

where

Bk0

jk = 0 0 , k = 1, 2, . . . m,

Bk−1 + Ck−1

is the rate over the subinterval (tk−1 , tk ) and

Ck0 - The net amount of principal contributed at time tk .

Bk0 - The fund value (immediately before each contribution) at time tk .

X

L= v t Rt ,

t

where

L - The loan amount.

Rt - installment payment (including principal and interest) at time t.

For the sinking fund method we have:

X

L= Rt (1 + j)n−t − iLsn|j ,

t

i - rate of interest paid on the loan.

j - rate of interest earned on the sinking fund.

- Uneven CashflowUploaded byKingsleyModjadji
- ABM NumericalsUploaded byRahul Singh
- US Internal Revenue Service: rr-04-66Uploaded byIRS
- Chapter 04 {Final Energy Financial Management}.DocUploaded byrathneshkumar
- Lecture 3Uploaded bysalmanshahidkhan
- pv_fvUploaded byMd Rakibul Hasan
- Excel Chapter 15 StudentUploaded bysagarsbh
- NPV_ConceptUploaded byAshish Singh
- Series of nnnmentsUploaded bybharath_mv7
- Time Value of MoneyUploaded byjawad_iub
- QT 1 Tutorial 1-6Uploaded byHui Kee
- sec52Uploaded bybellejaraula
- Chapter8DerivationofImmun (1)Uploaded byNainam Seedoyal
- ECON Assign 1-15Uploaded byAnna Selma
- chap-5-actUploaded byJuan Sotelo Alcantara
- Chapter 6Uploaded byMorerp
- FCF 9th Edition Chapter 06Uploaded byAlmayaya
- MIT15_401F08_lec02Uploaded byaftabasad
- Chapter 25_acctg for Derivatives and Hedging Part 4Uploaded byPutmehudgJasd
- Cfin4 Integrative Problem Ch04Uploaded byJagatjeet Mohapatra
- highway-1Uploaded byCy Ann
- Chapter 2 part 1.pptUploaded byRaphael Razon
- TIme Value of MoneyUploaded byabbishek
- chapter 5 and 6.pptUploaded byphuphong777
- TIme value of Money.docxUploaded byabbishek
- Compound InterestUploaded byarif nugraha
- ChE 411_Class Lecture_MR.pdfUploaded byTamzidul Alam
- GENERAL ANNUITY.docxUploaded byGenevie Gonzales
- Chapter AnnuityUploaded bytruong
- Discount tableUploaded byClaudine Cj

- documentation of bank (bank of baroda)Uploaded byDevesh Verma
- RICE FLAKESUploaded bykaushik_patel2004
- buying a house projectUploaded byapi-275968399
- Internship ReportUploaded byLoan Ziu
- Maceda Law NotesUploaded byBetson Cajayon
- A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer satisfaction of The City Bank Ltd.Uploaded byShofiq
- CFO SVP Vice President Finance in St Louis MO Resume Matt StrateUploaded byMattStrate
- 2018.10.24 [2115] Decl. of J. Slavek ISO of CVX's Mtn. to Hold Donziger in ContemptUploaded byMichaelKrauss
- Instructions to Fill Up the Final Declaration FormUploaded byKrityanand Kundan
- Chapter 11 SolutionUploaded byBouchraya Milito
- Five Key Factors That Move the Forex MarketsUploaded byGuna Kanan
- Amended by LawsUploaded byElmo Deceda
- Partnership AccountingUploaded byKhuram Shahzad
- Credit CrisisUploaded byvsparmar
- Debt InvestmentsUploaded byHarsh Thariani
- NPAUploaded byVamshiKrishna
- CI and TrainUploaded byMohanshyam
- PBL 2012Uploaded bySajidHuqAmit
- QuantitativeUploaded byKRISHNAVINOD
- NPA-RBI Master CircularUploaded byhmsonawane
- Sintex AnalysisUploaded byAjay Kumar
- US Internal Revenue Service: i8865--2003Uploaded byIRS
- CL MANAGEMENT.pptUploaded byJohn Carlos Wee
- Econ 2035 Chapter 8 Study GuideUploaded byJoseph
- Banco Filipino Savings v DiazUploaded byEcnerolAicnelav
- ,Case Study Icici BankUploaded byRuchika Garg
- Time value of Money 1.pptUploaded byRamalingam Chandrasekaran
- afm- ratio analysis theoryUploaded byMr. N. KARTHIKEYAN Asst Prof MBA
- BSZ_IM_Ch02_4eUploaded byfadapow4u
- chap03Uploaded byKunal Puri