tai文档新wan财务管理_lecture3(ch3).pptVIP

Topics Covered Future Values Present Values Multiple 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. Compound Interest - Interest earned on interest. Simple Interest - Interest earned only on the original investment. Future Values Future Value of $100 = FV Future Values Future Values Future Values with Compounding Manhattan Island Sale Present Values Present Values Present Values Example You just bought a new computer for $3,000. The payment terms are 2