Formula Sheet (not comprehensive) Description Formula Lecture Present value single amount PV 0 =FV n ( 1+ i) −n 2 Future value single amount FV n =PV 0 ( 1+ i) n 2 Equivalent Annual rate EAR= ( 1+ j m ) m −1 2 Present value of an annuity PVA n =CF× [ 1− 1 ( 1+ i ) n i ] 3 Future value of an annuity FVA n =CF× [ ( 1 +i ) n −1 i ] 3 Perpetuity PVA ∞ = CF i-g 3 Bond price BP 0 =C× [ 1− 1 ( 1 +i ) n i ] + F ( 1 +i ) n 4 Share Price P 0 = D 1 R-g 5 NPV NPV = ∑ t=0 n NCF t ( 1 +k ) t 6
