[管理学]时间价值补充.ppt

Chapter 4 Discounted Cash Flow Valuation Chapter Outline 72 principle EAR and APR Continuous Compounding Growing Annuity Growing Perpetuity How Long is the Wait? If we deposit $5,000 today in an account paying 10%, how long does it take to grow to $10,000? 72法则 当贴现率r%介于5%~20%，使你的钱变成2倍大约需要的时间是：72/r(年) 接上例，72/10=7.2(年) 当你想在35岁的时候，你想要你的资产达到100万，而你只有50万的资本可供投资。每年的增长率是8%，那么就需要9年时间，即你在26岁的时候就必须开始投资。 Effective Annual Rate (EAR) This is the actual rate paid (or received) after accounting for compounding that occurs during the year If you want to compare two alternative investments with different compounding periods you need to compute the EAR and use that for comparison. Annual Percentage Rate This is the annual rate quoted by law By definition APR = period rate times the number of periods per year Consequently, to get the period rate we rearrange the APR equation: Period rate = APR / number of periods per year You should NEVER divide the effective rate by the number of periods per year – it will NOT give you the period rate Computing APRs What is the APR if the monthly rate is .5%? .5(12) = 6% What is the APR if the semiannual rate is .5%? .5(2) = 1% What is the monthly rate if the APR is 12% with monthly compounding? 12 / 12 = 1% Can you divide the above APR by 2 to get the semiannual rate? NO!!! You need an APR based on semiannual compounding to find the semiannual rate. Effective Annual Rates of Interest A reasonable question to ask in the above example is “what is the effective annual rate of interest on that investment?” Effective Annual Rates of Interest So, investing at 12.36% compounded annually is the same as investing at 12% compounded semi-annually. Effective Annual Rates of Interest Find the Effective Annual Rate (EAR) of an 18% APR loan that is compounded monthly. What we have is a loan with a monthly interest rate of 1.5%. This is equivalent to a loan with an annual interest rate of 19.56%. Computing EARs - Example Suppose you can earn 1% per month on $1 in