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Interest Rate (r)
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Nominal Risk-Free Interest Rate
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Interest Rate (r) Real Risk Free Interest Rate + Inflation Premium + Default Premium + Liquidity Premium + Maturity Premium
Nominal Risk-Free Interest Rate Real risk-free interest rate + Inflation Premium
Future Value - Single Cash Flow in 1 year (Formula) FV = PV(1+r) where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate
Future Value Compounding (Annual) - Single Cash Flow in N years (Formula) FV = PV(1+r)^N where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate (as decimal) N=Number of compounding periods (Annual)
Future Value Compounding other than Annual - Single Cash Flow in N years (Formula) FV = PV(1+r/m)^mN where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate (as decimal) N=Number of compounding periods (Annual) m=Number of compounding periods in one year
Future Value Continuous Compounding FV = PV(e)^rN where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate (as decimal) N=Number of compounding periods (Annual) m=Number of compounding periods in one year e=2.7182818
Effective Annual Rate (EAR) - only rates EAR = (1+r/m)^m - 1 where r = rate of interest per period or stated annual iterest rate (as decimal) m=Number of compounding periods in one year
Effective Annual Rate (EAR) - rate, PV & FV EAR = (FV / PV)^1/N - 1 where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate (as decimal) N=Number of years
Effective Interest Rate (EIR) - rate, PV & FV - Other than annual compounding frequency (i.e. monthly, quarterly, & semiannually) r = [(FV / PV)^1/mN - 1] m where PV=Present Value FV=Future Value r = rate of interest per period or stated annual iterest rate (as decimal) N=Number of years m=Number of compounding periods in one year
Created by: vgjr
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