The Time Value of Money. Economics 71a Spring 2007 Mayo, Chapter 7 Lecture notes 3.1. Goals. Compounding and Future Values Present Value Valuing an income stream Annuities Perpetuities Mixed streams Term structure again Compounding More applications. Compounding.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Mayo, Chapter 7
Lecture notes 3.1
FV = 1000*(1.10) = 1,100
FV = 1000*(1.1)*(1.1)*(1.1) = 1,331
Discounting payments 1, 2, 3 years from now