 If cash flow of Ct rupees at the end of year t, The Present value of this future payment is

𝒕 𝑪
Present Value PV = (𝟏+𝒓) 𝒕

 Present value of Ordinary Annuity

𝒙 𝟏
PV = 𝒓 [𝟏 − (𝟏+𝒓)𝒏 ]

 Future value of Rs x at the end of t years at r%,

FV = x(1+r) t

 Future value of Ordinary equity

𝒙
FV = [(𝟏 + 𝒓)𝒏 − 𝟏]
𝒓

 For Annuity Due, multiply the FV/PV by (1+r)

 Present value of Perpetuity given the discount rate r and cash payment x
𝒙
PV = 𝒓

 Growing annuity with growth rate ‘g’ and discount rate ‘r’ is given by

𝒙 (𝟏+𝒈)𝒕
PV= [𝟏 − ]
(𝒓−𝒈) (𝟏+𝒓)𝒕
 Growing perpetuity is given by
𝒙
PV= (𝒓−𝒈)

 Continuous compounding, with rate ‘r’ and time ‘t’ years,

𝒙 𝟏
PV = 𝒓 [𝟏 − 𝒆𝒓𝒕 ]
 Compounding at different frequency

𝑥
PV = 𝑟
(1+ )𝑛𝑚
𝑚