10.9 Future and Present Value Factors (Multipliers)

Here is another look at a somewhat less abbreviated interest rate table. Assume that we are given $1 of Present- and Future-Values respectively. (Fill in the empty 15% column by hand and compare your answers to the factors in the published tables; see the link to Interest Rate Tables below.) Note that, in using tables, “Periods” = n × p.

 

Future Value Factors              Formula: FV = PV (1 + R/p)n×p

 

Present Value Factors             Formula: PV = FV ÷ (1 + R/p)n×p

 

Here are some interest rate tables for you to use:

http://www.retailinvestor.org/pdf/futurevaluetables.pdf

 

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Introduction to Financial Analysis Copyright © 2022 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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