Theory of Interest Present/Future Value, Interest/Discount

Nominal Interest (i^(m)) to annual effective interest (i)

Effective annual interest rate (i) to nominal interest rate (i^(m))

Effective annual interest rate (i) to effective annual discount (d)

Nominal discount rate (d^(p)) to effective annual discount (d)

Effective annual discount rate (d) to nominal discount rate (d^(p))

Effective annual discount rate (d) to effective annual interest rate (i)

Present Value=? (interest)

PV =

Future Value=? (interest)

Present Value (Discount)

Relationship between d and d^(∞)

d < d^(∞)

Relationship between i and i^(∞)

i^(∞) < i

Relationship between d and i

d < i

Relationship between d and i^(∞)

d < i^(∞)

Relationship between i and d^(∞)

d^(∞) < i