FINA 363 WEEK 2

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Last updated 1:44 AM on 8/27/26
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5 Terms

1
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time value of money characteristics

money has earning power, inflation, uncertainity, and time prefrence


2
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value of cash flow in future vs current value to be recorded in future

compounding, discounting

3
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at the end of year 3, one year from today (were year 2), and beginning of year 4 are all

the same year/watch for wording

4
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for i

dont forget to multiply by 100 or divide by m

5
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annuity

constant stream of identical cash flows over a certain # of periods, occurring at the end of each period