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financial mathematics (Perpetuity (Formula: PV∞=C/r the formula values…

- - - - PV=C/r;
    - - PV=C/r+C
- - - - Step1: the FV of each future amount to be receive at a comparable point in time.
      - Step2:Sum all FV at a comparable point in time together to determine the FV of the Known mixed stream
  - - - Step1:The present value of each future amount to be received at a comparable point in time(usually t=0)
      - Step2: Sum
- - - - PVA=C/r[1-1/(1+r^n)]
      - FVA=PVA(1+r^n)=C/r+[(1+r)^n-1]
    - - Annuity Due= Ordinary Annuity *(1+r)
      - FVA=C/r{(1+r)^n-1]*(1+r)
      - PVA=C/r[1-1/(1+r)^n](1+r)
    - - Growth Annuities-cash flows that increase each year at a constant rate
      - Equivalent Annuities-unequal life problem
      - Loan Annuities-paying off your mortgage
        -Requires the borrower to repay both the principal & interest over time (usually the amount paid each period is equal)
      - Solving for unknown interest rate
        
        must use either Trial & Error/ Interpretation