Question: 4-2 Future value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along

 4-2 Future value calculation Without referring to tables or to the
preprogrammed function on your financial calculator, use the basic formula for future

4-2 Future value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table. Compare the calculated value to the value in Appendix Table A-1. Case Interest rate, i Number of periods, 12% Appendix PVIFA: 1- (1+r) -N FVIFA= (1+r) 1 PvIP = i +. FVIF = (1 + r)* FVIFaxm =(1+)"" FVIF.m-120 = erxN 7= w;r; r; = Rp +b; xrm - Rp) r=p+ IP + RP R_CF+P-P- -1 P-1 0,= vwo + wo +21,20102w, wg CV = (12) Memo: N is maturity in years; m is the number of periods inside a year; r is the annual interest rate; w, is the weight of the asset i in the portfolio; P12 is the correlation between asset 1 and asset 2; Euler's math constant (e) is equal to 2.7182; R is the simple return of an asset through time; T is the return of the portfolio; CF is the cash flow; CV is the coeficient of variation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!