Lecture Notes on Time Value of Money

What will $1,000 be worth at the end of one year when the annual interest rate is 12% [This is the APR.] when interest is compounded: Annually: t=1 i =12% FV1 = PV x (1+i)1 = $1,000 x (1.12)1 = $1,120. ... The above assumes the END mode. If the calculator is set in the BEGIN mode, it calculates an annuity due. Problem. What is the present value ... ................
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