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  • Annuity Example

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    Sathwik Reddy
    12 views2 pages
    Problem on annuity

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    Annuity example

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    Problem on annuity

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    12 views2 pages

    Annuity Example

    Uploaded by

    Sathwik Reddy
    Problem on annuity

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    FV PV

    10000000 5583947.77 .=FV/(1+r)^10


    6% Discounting

    PV=FV/(1+r)^n

    FV=PV*(1+r)^n
    Future 10000000

    ANUITY
    perpetuity

    Fama French Three factor Model

    Carhart our factor model


    difference between Rm and Rf
    ER=Alpha+Beta*(Rm-Rf) market risk premium
    Risk premium
    Future Values
    beginning o1 yr 2nd yr 3rd Yr 4 Yr
    -10000 1500 4000 3500 2500 11500
    FV/(1+i)^1FV/(1+i)^2 FV/(1+i)^3FV/(1+i)^4
    1415.094 3559.986 2938.667 1980.234
    i=6% 9893.982
    Present Value

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