The document defines notations and formulas for present and future values of various annuities. It introduces notations for interest rates, payment amounts, time periods, accumulated values, discounted values, and perpetuities. Formulas are provided for calculating the present value of an ordinary perpetuity, present value of a perpetuity due, future value of a constant-growth annuity, and present value of a constant-growth annuity.
The document defines notations and formulas for present and future values of various annuities. It introduces notations for interest rates, payment amounts, time periods, accumulated values, discounted values, and perpetuities. Formulas are provided for calculating the present value of an ordinary perpetuity, present value of a perpetuity due, future value of a constant-growth annuity, and present value of a constant-growth annuity.
The document defines notations and formulas for present and future values of various annuities. It introduces notations for interest rates, payment amounts, time periods, accumulated values, discounted values, and perpetuities. Formulas are provided for calculating the present value of an ordinary perpetuity, present value of a perpetuity due, future value of a constant-growth annuity, and present value of a constant-growth annuity.
The document defines notations and formulas for present and future values of various annuities. It introduces notations for interest rates, payment amounts, time periods, accumulated values, discounted values, and perpetuities. Formulas are provided for calculating the present value of an ordinary perpetuity, present value of a perpetuity due, future value of a constant-growth annuity, and present value of a constant-growth annuity.
g = Constant growth rate i = Interest rate per conversion period (periodic
PMT = Periodic payment of the annuity interest rate) n = Number of payments during the term of an j = Nominal interest rate annuity t = Time period FV = Accumulated value or future value of an PV = Discounted value or present value of an annuity annuity 𝐹𝑉𝐷𝑢𝑒 = Future value of an annuity due 𝑃𝑉𝐷𝑢𝑒 = Present value of an annuity due 𝐹𝑉𝐷𝑒𝑓 = Future value of a deferred annuity 𝑃𝑉𝐷𝑒𝑓 = Present value of a deferred annuity 𝑃𝑉𝑃𝑒𝑟𝑝 = Present value of an ordinary perpetuity 𝑃𝑉𝑃𝑒𝑟𝑝 𝐷𝑢𝑒 = Present value of a perpetuity due