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FV PV (1+ K) : Fva PMT (1+k) - 1 1 - (1+ K)
FV PV (1+ K) : Fva PMT (1+k) - 1 1 - (1+ K)
Future Value of a n
1
Lump Sum. (FVIFk,n) FV= PV ( 1+ k )
Present Value of a -n
2
Lump Sum. (PVIFk,n) PV= FV ( 1+ k )
( 1+k )n - 1
3
Future Value of an
Annuity. (FVIFAk,n) FVA = PMT
k [ ]
1-( 1+ k )-n
4
Present Value of an
Annuity. (PVIFAk,n) PVA= PMT [ k ]
Present Value of PMT
5 PV perpetuity =
Perpetuity. (PVp) k
Effective Annual
m
6 Rate given the EAR = APR EAR =(1+k/m ) - 1
APR.
n
PMT 1+g
7
Present Value of a
Growing Annuity.
Present value of
PVGA=
( k−g )
1−
[ ( )]
1+k
8 PVGP=PMT/(k-g)
growing perpetuity
9 Yield to Maturity =(C+(M-P)/n)/(M+P)/2
Portfolio Variance
10 σ p2=w12 σ 12 +w 22 σ 22 +2 w1 w2 ρ12 σ 1 σ 2
(2 securities)
Legend