Annuity Stream of Cash Flow Payments
a set of level cash flows occurring each time period for a fixed length of time
Ordinary Annuities
Annuities where the payments occur at the end of each time period
Annuities due
Annuity streams with payments occurring at the beginning of each time period
Perpetuity
An annuity stream where the payments occur forever
Stated Annual Interest
The interest rate expressed in contracts with the frequency of compounding
Effective Annual Rate
the interest rate expressed as if it were compounded once per year
Annual percentage rate
the interest rate charged per period multiplied by the number of periods per year
Future Value
C x (1+r)^t
FV factor
(1+r^t
Present Value
C/(1+r)^t
PV facor
1/(1+r)^t