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What is the Future value formula?
 FV= Future value
 PV=Present Value
 r= rate as a decimanl
 n=no. of time periods

What is the present value formula?
 PV= Present Value
 FV= Future Value
 r= rate of interst
 n= no. of time periods

What is the formula for the Future Value of an annuity where payments are made at the end of the time period?
 FV= Future value of annuity
 C=the amount of payments per time period
 r= rate of interest
 n= no. of time periods

What is the formula for the future vale of annuity at the start of the time period?

What is the formulas for the Present Value of annuity at the end of the time period?

What is the formula for the present value of an annuity where payments are made at the start of the term?

What is the formula for the Present Value of a perpetuity?
 C= Constant dollar amount per time period
 r= rate of interst

What is the formula for effective annual rate?
 q=rate quoted for customer
 m=method of compounding

What relation does present value have to future value?
 The present value is the inverse of the future value

What do you assume unless told otherwise with Time value?
Always assume payments are at the end of the time period unless told otherwise in the question.

What are the three basic types of loans?
 Pure discount loans
 Interest only loans
 Amortized loans

What affect does inflation have on the value of money?
 It has a negative effect to be received in the future.
 Inflation adjusted rate=quoted rateinflation rate

What are the steps to calculating average annual return?
 1. Find the return relative for each year (1+r)
 2.Find the product of all returns relative
 3. Depending on the no. of years return x√
 4. Minus 1 from your answer