Scribd Logo
Upload

Welcome to Scribd!

  • TVM Formula

    Uploaded by

    fgha
    14 views1 page
    The document outlines two formulas: the present value formula calculates the current worth of a future lump sum payment by multiplying the future payment amount by the inverse of the interest rate compounded over the number of periods until payment; the future value formula calculates the value of an investment in the future by multiplying the initial deposit amount by the interest rate compounded over the number of periods.

    Original Description:

    Original Title

    TVM-Formula

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines two formulas: the present value formula calculates the current worth of a future lump sum payment by multiplying the future payment amount by the inverse of the interest rate compounded over the number of periods until payment; the future value formula calculates the value of an investment in the future by multiplying the initial deposit amount by the interest rate compounded over the number of periods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views1 page

    TVM Formula

    Uploaded by

    fgha
    The document outlines two formulas: the present value formula calculates the current worth of a future lump sum payment by multiplying the future payment amount by the inverse of the interest rate compounded over the number of periods until payment; the future value formula calculates the value of an investment in the future by multiplying the initial deposit amount by the interest rate compounded over the number of periods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Present Value (PV) Formula

    -n
    PVLump-sum= C x [(1+i) ]

    Future Value (FV) Formula

    FVLump-sum = C x [(1+i)n]

    You might also like