Vous êtes sur la page 1sur 16

Formula FV FVis Future Value PV is Present Value r is the interest rate n is time period (Annuity) Types of Annuities •Ordinary Annuity: Payments or receipts occur at the end of each period. (Ordinary Annuity) Period 1 End of Period 2 Period 3 0
1
2
3 Today \$100
\$100
\$100
Equal Cash Flows
Each 1 Period Apart

(Annuity Due) Beginning of Period 1 Beginning of Period 2 Beginning of 0
1
2
3 \$100
\$100
\$100
Today
Equal Cash Flows
Each 1 Period Apart

The future value of an ordinary annuity can be viewed as occurring at the end of the last cash flow period, whereas the future value of an annuity due can be viewed as occurring at the beginning of the last cash flow period F n= A x CVAF n,r

Example of ordinary Annuity Cash flows occur at the end of the period
0
1
2
3
4
7% \$1,000
\$1,000
\$1,000
\$1,070
\$1,145 FVA 3 = \$1,000(1.07) 2 +
\$1,000(1.07) 1 + \$1,000
\$3,215 = FVA 3
= \$1,145 + \$1,070 + \$1,000
= \$3,215

(1+i)

Cash flows occur at the beginning of the period 0
1
2
3
4
7% \$1,000
\$1,000
\$1,000
\$1,070
\$1,145
\$1,225 FVAD 3 = \$1,000(1.07) 3 +
\$1,000(1.07) 2 + \$1,000(1.07) 1
\$3,440 = FVAD 3
= \$1,225 + \$1,145 + \$1,070
= \$3,440