[ADMS 3530] - Final Exam Guide - Everything you need to know! (77 pages long)

• School: York University
• Department: Administrative Studies
• Course: ADMS 3530
• Professor: Irvin Pestano

Document Summary

Adms 3530 review session - notes and examples. Future value: fv = pv (1 + r)n. Present value: pv = future value (1 + r)n. In two years from today, the following cash flows will have a future value of . 32: today, at the end of one year, and ,400 at the end of two years. What is y: . 00, . 00, . 00, . 64. Ordinary (regular) annuity & ordinary perpetuity cash flows start at end of first time period. Perpetuity due & annuity due cash flows start immediately. Pv perpetuity due = pv ordinary perpetuity x (1 +r) Pvannuity = pva = c x pvaf (note: c = pmt) Fv annuity = fva = c x fvaf (future value annuity factor) Pv (annuity due) = pv(simple annuity) (1+r) Fv (annuity due) = fv (simple annuity) (1+r) Effective annual interest rates (ear) see lecture 3 (tvm) notes. Apr = finding nominal rate using simple interest.