NISM 10A Investment Adviser Level 1 Notes
Page 12 Of 181
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Present Value Formula: Used to calculate the current worth of a single future cash flow or annuity.
Future Value Formula: Determines the future worth of a present sum or series of cash flows.
Annuity Applications: Common in loan repayments, pensions, and recurring investment calculations.
Perpetuity Applications: Used for assets like perpetual bonds or endowments with indefinite cash flows.
Time Period Impact: Longer time periods reduce present value and increase future value due to compounding effects.
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NISM 10A NISM Investment Adviser Level 1
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