公司金融,邵学言04bmm5e.pptVIP

Topics Covered Future Values and Compound Interest Present Values Multiple Cash Flows Level Cash Flows Perpetuities and Annuities Inflation Time Value Effective Annual Interest Rate Future Values Future Value - Amount to which an investment will grow after earning interest. (at some future point in time) Simple Interest - Interest earned only on the original investment (only on the principal). Compound Interest - Interest earned on interest. (not only on the principal) Future Values Example - Simple Interest Interest earned at a rate of 6% for five years on a principal balance of $100.