Finance Ch4 0.0 / 5 ? EconomicsFinanceUniversityNone Created by: Nyle PatelCreated on: 04-05-17 14:58 How does Compound Interest work FV= 1 of 8 How do you calculate FV when investment is compounded m times a year for T years at an APR of r FV = 2 of 8 How do you calculate FV from Continuous Compounding FV = 3 of 8 What is a perpetuity Constant stream of CF forever, PV=C/r 4 of 8 What is a growing perpetuity Growing stream of CF forever, PV=C/r-g 5 of 8 What is an annuity constant stream of CF until maturity, PV= 6 of 8 What is a growing annuity growing stream of CF until maturity, PV= 7 of 8 Why is a firms worth tricky to determine Tricky to determine size, time and risk of cashflows 8 of 8
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