+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Simple Interest
|
 |
|
Compound Interest
|
 |
|
Accumulation Function
|
The accumulated value of the fund at time t of an initial investment.
 |
|
Sum of a Geometric Progession
|
 |
|
Effective Rate of Interest
|
Regular i. Tells us how fast a fund is growing based on the amount in the fund at the beginning of the year.
 |
|
Effective Rate of Discount
|
Regular d. Tells us how fast a fund is growing based on the amount in the fund at the end of the year.
 |
|
Present Value
|
Amount at time 0. How much should we invest today in order to have a given amount at the end of t years?
 |
|
Discount to Interest Relationship
|
  |
|
Nominal Rate of Interest
|
Cannot be directly used to calculate. "compounded" & "convertible". First we convert according to the number of compounding periods.
 |
|
Nominal Rate of Discount
|
Cannot be directly used to calculate, we need to convert to an effective rate.
 |
|
Force of Interest
|
Rate of growth at any time**U-substitution**variable means integrate from a to b**
 =  |
|
Constant Force of Interest
|
..
 |
|
Time Value of Money
|
Always use a common comparison date
|
|
Equation of Value
|
?
|
|
Inflation
|
..
 |
