Important Points for IC 99 - Asset Management Exam
Page 69 Of 109
Go to:
Present value of an annuity : The annuity factor for the present value of an annuity can be calculated using the following formula : PV = A [(1 - (1 / (1 + i)
Determination of future value : Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or rate of return; it is calculated by multiplying the present value of the asset by the accumulation function.
Future value of a single amount : The future value of a present amount can be measured by adding compound interest over a specified period of time. Compound interest is the amount by which the principal grows each period. Principal is the amount on which interest is paid.
Future Value of annuity : It can be computed directly using the following formula : FVA = A [((1 + i)
Money loses value over time which makes it more desirable to have it now rather than on some future date.
MODELEXAM® 
www.realsoftinfoplan.com