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Formulae Formulae: Introduction To Finance
Formulae Formulae: Introduction To Finance
FORMULAE
PV Factor, PF(r, n)
1
1 r n
FV C1* 1 r n1 C2 * 1 r n 2 ... Cn 1* 1 r Cn
4) Present Value of a Stream of Cash Flows
PV
C1
C2
Cn
2 ...
n
1 r 1 r
1 r
1
FAF(r n) * 1 r n 1
FAF(r,
r
1
1
PV = C*PAF(r,n) PV Annuity Factor, PAF(r, n) r * 1
n
1 r
growing
g at rate g:
g
7)) Present Value of an Annuityy g
PV=C*PAF(r,n,g)
1 g n
1
* 1
PAF(r, n, g )
r g
1 r n
3
C1
r g