0000302176 00000 n 0 All rights reserved. Nominal Interest Rate and Effective Yield, Time Value of Money for Different Compounding Frequencies, Future Value and Present Value of Ordinary Annuity, Present Value and Future Value of Annuity Due, Present Value and Future Value of Uneven Cash Flows, Annuities with Different Compounding Frequencies, Using a Timeline to Solve Time Value of Money Problems, Time Value of Money Quiz 1 ( Reading 6, CFA Level I), CFA® Exam Overview and Guidelines (Updated for 2021), Changing Themes (Look and Feel) in ggplot2 in R, Facets for ggplot2 Charts in R (Faceting Layer). endstream endobj 260 0 obj[283 0 R] endobj 261 0 obj[278] endobj 262 0 obj<> endobj 263 0 obj[226 0 0 0 507 715 0 0 303 303 0 498 250 306 252 386 507 507 507 507 507 507 507 507 507 507 268 268 0 498 0 463 0 579 544 533 615 488 459 631 623 252 319 520 420 855 646 662 517 673 543 459 487 642 567 890 0 487 0 0 0 0 0 0 0 479 525 423 525 498 305 471 525 230 0 455 230 799 525 527 525 525 349 391 335 525 452 715 433 453 0 0 460] endobj 264 0 obj<> endobj 265 0 obj<> endobj 266 0 obj<> endobj 267 0 obj<> endobj 268 0 obj<> endobj 269 0 obj<> endobj 270 0 obj<>stream FV1: PV = -500, N = 4, I/Y = 8. CPT > FV = -$680.244, FV2: PV = -600, N = 3, I/Y = 8. 0000006223 00000 n The present value of the uneven series of cash flows can also be calculated using the Cash Flow (CF) key and NPV function. The following calculations are demonstrated using BA II Plus calculator. 0000275948 00000 n CPT > PV = +$1,361.166, Future Value of cash flows = Sum of all Future Values = $2280.177. 0000302409 00000 n Suppose that you are offered an investment that will pay you $1,000 per year for 10 years. 0000007954 00000 n TI BAII Plus Financial Calculator To enter data: ... PV means “present value.” PMT is the dollar amount of the payment. 0000001913 00000 n 251 53 0000002736 00000 n FV2: PV = -600, N = 3, I/Y = 8. The net present vale (NPV) function on the BA II Plus Financial Calculator finds the present value of a stream of cash flows. And this is time equals two. Press 2nd FV to clear the financial keys. %%EOF While the time value of money keys can find the present value of a lump sum payment or stream of cash flows that does not change over the whole investment horizon, the NPV function does even more. 0000006601 00000 n %PDF-1.5 %���� FV4: PV = +1,500, N = 1, I/Y = 8. To calculate the future value of this series of cash flows, we will need to treat each cash flow as an independent cash flow and calculate its future value. 0000010576 00000 n 0000003079 00000 n CPT > FV = -$680.244. 0000011586 00000 n 0000006356 00000 n We will adopt the procedure that we used to calculate the present value of a single cash flow. CPT > PV = -$462.963, PV2: FV = -600, N = 2, I/Y = 8. 0000092676 00000 n CFA Institute does not endorse, promote or warrant the accuracy or quality of Finance Train. 0000003885 00000 n endstream endobj 252 0 obj<>>> endobj 254 0 obj<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/ExtGState<>>>/Group<>/StructParents 0/Tabs/S>> endobj 255 0 obj[226 0 0 0 0 0 0 0 0 0 0 0 0 0 0 430 0 507 507 0 0 0 0 0 0 0 276 0 0 0 0 0 0 606 561 529 630 488 459 637 0 267 0 0 0 874 659 0 532 0 0 0 495 0 591 0 0 520 0 0 0 0 0 0 0 494 537 418 537 503 316 474 537 246 0 480 246 813 537 538 537 0 355 399 347 537 473 745 0 474] endobj 256 0 obj<> endobj 257 0 obj<> endobj 258 0 obj<> endobj 259 0 obj<>stream 0000006831 00000 n Copyright © 2020 Finance Train. So, if you look at the mathematics here, what we’ve got is the present value of some end of period payments. 0000004991 00000 n 0000179246 00000 n endstream endobj 303 0 obj<>/W[1 1 1]/Type/XRef/Index[24 227]>>stream 0000000016 00000 n CPT > PV = +$1,102.545, PV5: FV = +2,000, N = 5, I/Y = 8. 0000093205 00000 n CPT > FV = +$2,000, Future Value of cash flows = Sum of all Future Values = $3350.328, PV1: FV = -500, N = 1, I/Y = 8. 0000288480 00000 n 0000288658 00000 n If this is the end of the first period, that’s time one, one period from now. FV5: PV = +2,000, N = 0, I/Y = 8. CPT > FV = +$1,166.400, FV4: PV = +1,500, N = 1, I/Y = 8. 0000288254 00000 n We have looked at the PV/FV calculations for single sums of money and for annuities in which all the cash flows are equal. ��_�.��.���hiŠ�Vv�@�2�WlA�|)�K���EF��_͗�HYI" �t�hɎ�Ij��(oXN�[��p;l/Ҿ�`A�k�v��1x+"?���dyl�ыz*����ա�;��a/�ti�XU. xref Assuming an interest rate of 8%, we will now calculate the present value and future value of this uneven series of cash flows. 253 0 obj<>stream As with the IRR and NPV calculations, to use the data functions in your TI-BA II Plus, you must first familiarize yourself with the up and down arrows (↑↑↓↓) at the top of the keyboard.