English Spanish

FV Future Value VF Valor Futuro FV $6,000

PV Present Value VA Valor Actual rate 12%
rate Rate tasa Tasa nper 6 years
nper # of periods nper # de períodos PV -$3,039.79

English Spanish
FV Future Value VF Valor Futuro PV -$1,000
PV Present Value VA Valor Actual rate 8%
rate Rate tasa Tasa nper 3 years
nper # of periods nper # de períodos FV $1,259.71
 PV -$500,000
rate 7%
nper 25 years
FV $2,713,716.32

FV $2,500,000
rate 7%
nper 25 years
AV -$460,622.94
 Annual Cash Flows
Year Annuity A (ordinary) Annuity B (Annuity due)
0 $0 $1,000
1 $1,000 $1,000
2 $1,000 $1,000
3 $1,000 $1,000
4 $1,000 $1,000
5 $1,000 $0
Totals $5,000 $5,000

Ordinary (EY)
PMT -$1,000
rate 7%
nper 5
FV $5,750.74

Annuity Due (BY)

PMT -$1,000
rate 7%
nper 5
FV $6,153.29

Ordinary
PMT $700
rate 8%
nper 5
PV -$2,794.90

Payment Due
PMT $700
rate 8%
nper 5
PV -$4,435.15
 English Spanish
FV Future Value VF Valor Futuro
PV Present Value VA Valor Actual
rate Rate tasa Tasa
nper # of periods nper # de períodos
PMT Payment Pago Pago
 Present Value of a perpetuity
PV = CF / r

Perpetuity is an annuity that provides continual cash flows forever

End of Year Cash Flow
1 $11,500 FVn = PV * (1+r)^n Y1
2 $14,000 PV -$11,500
3 $12,900 rate 8%
4 $16,000 nper 4
5 $18,000 FV $15,645.62

End of Year Cash Flow

1 $400
2 $800 Y1
3 $500 FV $400
4 $400 rate 9%
5 $300 nper 1
PV -$366.97
 Y2 Y3 Y4 Y5
-$14,000 -$12,900 -$16,000 -$18,000
8% 8% 8% 8%
3 2 1 0
$17,635.97 $15,046.56 $17,280.00 $18,000.00 $83,608.15

Y2 Y3 Y4 Y5 Total
$800 $500 $400 $300 $2,400
9% 9% 9% 9%
2 3 4 5
-$673.34 -$386.09 -$283.37 -$194.98 -$1,904.76
PMT $800
nper 20 years 240
rate 8%
m monthly
FV $ 2,068,925,106.98
 John (Semiannualy) Jack (Annualy)
PV -$3,000 PV -$3,000
rate 3% rate 6%
nper 10 nper 5
FV $4,031.75 FV $4,014.68
 EAR = (1+ r/m) - 1

Annual 8.00% BANK A - Annual

PV -$10,000
Semiannual 8.16% nper 3
rate 4%
Quarterly 8.24% FV $11,248.64
EAR 4.00%
BANK B - Semiannual BANK C - Quarterly
PV -$10,000 PV -$10,000
nper 6 nper 12
rate 2% rate 1%
FV $11,261.62 FV $11,268.25
EAR 4.04% EAR 4.06%
PMT -$2,000
nper 40 years
rate 4%
FV $190,051.03
 Now Present Value Annuity PMT $100,000
$1,300,000 $1,409,394.46 nper 25
rate 5%
PV = $1,409,394.46
 Year Deposits
1 $3,000
2 $2,000
3 $4,000
4 $5,000

Y1 Y2 Y3 Y4
PMT -$3,000 -$2,000 -$4,000 -$5,000 -$14,000
rate 9% 9% 9% 9%
nper 3 2 1 0
FV $3,885.09 $2,376.20 $4,360.00 $5,000.00 $15,621.29
 Applications of Time Value Money

FV $30,000 PV $6,000
rate 6% nper 4
nper 5 rate 10%
PMT -$5,321.89 PMT -$1,892.82

Amortization Table
Year Beginning Principal
1 $6,000.00
2 $4,707.18
3 $3,285.07
4 $1,720.75

Finding Rate
PV -$1,250
FV $1,520
nper 4
rate 5.01%
Finding # of periods
PV $2,000 PV -$1,000
PMT -$514.14 FV $2,500
nper 5 rate 8%
rate 9.00% Nper 11.91

PV -$20,000
nper 20
rate 3.50%
FV $39,795.78

PV -$20,000
nper 10
rate 7.00%
FV $39,343.03
Amortization Table
Loan Payment Interest Principal End principal
$1,892.82 $600.00 $1,292.82 $4,707.18
$1,892.82 $470.72 $1,422.11 $3,285.07
$1,892.82 $328.51 $1,564.32 $1,720.75
$1,892.82 $172.07 $1,720.75 $0.00

Finding # of periods
PV $25,000
PMT -$4,800
rate 11%
Nper 8.15