Lecture Notes on Time Value of Money

Annually: t=1 i =12% FV1 = PV x (1+i)1 = $1,000 x (1.12)1 = $1,120. Quarterly: t=4 i = 3% FV4 = PV x (1+i)4 = $1,000 x (1.03)4 = $1,125.51. Monthly: t=12 i =1% FV12 = $1,000 x (1.01)12 = $1,000 x (1.126825) = $1,126.825. Daily: t=365 i = (12%÷365) = 0.032877% ................
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