FIN 301 1st Edition Lecture 16Notes based off of class power points. This is the mathematical financial part of finance. Be sure to refer back to class power for problems.BA 301 The Time Value of Money-2I. Future value of a single paymenta. Compounding of a single payment to future value II. Present value of a single paymenta. Sometime during the periodIII. Present value of multiple paymentsa. Multiple time periods b. Higher payments associated with it IV. Present Value of a Future Single Payment Investment Using a Financiala. Today = present valueV. Interpreting present valuea. The discounting rate is really important in the evaluation process b. Interest rates go up existing bond prices goes down VI. Practice with bondsa. Inverse relationship between stock and bond values and changes in interest rates VII. Finding the Rate of Return for a Single Investment (Calculator)a. Annuity is a sequence of equal multiple payments that include interest and principle VIII. An Annuity is a sequence of equal multiple paymentsa. An annuity pays down to over 0 overtime and has a future value of 0 – both interest and principle b. Not like a bond These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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