Finance Quiz 2

Present Value (PV)

• with how much money am I starting (do I need to street?)

• how much money will I have (do I want at) at the end?

• How much am I adding to (subtracting from) the amount each period?

• what am I earning each period?

• how many periods/ what length of time am I discussing?

Future Value (FV)

• with how much money am I starting (do I need to street?)

• how much money will I have (do I want at) at the end?

• How much am I adding to (subtracting from) the amount each period?

• what am I earning each period?

• how many periods/ what length of time am I discussing?

Payment (PMT)

• with how much money am I starting (do I need to street?)

• how much money will I have (do I want at) at the end?

• How much am I adding to (subtracting from) the amount each period?

• what am I earning each period?

• how many periods/ what length of time am I discussing?

Rate of Return (I or Rate)

• with how much money am I starting (do I need to street?)

• how much money will I have (do I want at) at the end?

• How much am I adding to (subtracting from) the amount each period?

• what am I earning each period?

• how many periods/ what length of time am I discussing?

Number of Periods (N or NPER)

• with how much money am I starting (do I need to street?)

• how much money will I have (do I want at) at the end?

• How much am I adding to (subtracting from) the amount each period?

• what am I earning each period?

• how many periods/ what length of time am I discussing?

you can move a dollar to the future

• compounding

• discounting

you can value a dollar from the future

• compounding

• discounting

Present Value

• -

• +

Future Value

• -

• +

Cash Inflows

• -

• +