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ANNUITY TYPES AND FORMULA

ANNUITY TYPES AND FORMULA


ORDINARY ANNUITY:
The annuity in which cash series occour at the end of the time period.
Example:
Rent paid by last of month

ANNUITY DUE:
The annuity in which the cash series occour at the start of the time period.
Example:
Give advance rent

FUTURE VALUE

Ordinary annuity
Annuity due
FVA = R x [(1+i)n – 1 / I ]
FVA   = future value of annuity
R = equal installment or payment
I = interest rate
n= year
TABLE FORMULA
FVA = R X FVIFAi,n
FVAD = R X [(1+i)n – 1 / I ]

TABLE FORMULA
FVAD  =R X FVIFA i,n x (1+i)

PRESENT VALUE

Ordinary annuity
Annuity due
PVA = R X {[1- 1/(1+i)n  ]/i}
TABLE FORMULA
PVA = R X PVIFAi,n
PVAD = R X {[1- 1/(1+i)n  ]/i} X (1+i)
TABLE FORMULA
PVAD  =R X PVIFA i,n x (1+i)


FINANCIAL MANAGEMENT
DECISION AREA OF FINANCIAL MANAGEMENT
AGENCY PROBLEM
TYPES OF BUSINESS
FINANCIAL SYSTEM
FINANCIAL INTERMEDIARIES
TYPES OF FINANCIAL MARKETS
TIME VALUE OF MONEY
EXAMPLES AND FORMULA TIME VALUE OF MONEY
CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM
ANNUITY TYPES AND FORMULA
AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE
EFFECTIVE INTEREST RATE WITH EXAMPLE
VALUATION OF LONG TERM SECURITIES (BONDS)
TYPES OF BONDS
BONDS FORMULA,ZERO COUPON PERPETUAL
VALUATION OF LONG TERM SECURITIES (SHARE)
CASH AND MARKETABLE SECURITIES MANAGEMENT
MANAGING CASH INFLOW AND OUTFLOW
SECURITIES MANAGEMENT
SHORT TERM FINANCING
SPONTANEOUS LABILITIES
NEGOTIATED FINANCE
CAPITAL BUDGETING
CAPITAL BUDGETING TECHNIQUE
NET PRESENT VALUE TECHNIQUE
INTERNAL RATE OF RETURN TECHNIQUE
ACCOUNT RECEIVABLE MANAGEMENT
INVENTORY MANAGEMENT
FORCASTING

MBA NOTES FINANCIAL MANAGEMENT
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