Topical review
- Determine PV and FV of simple cash flows, lump sums, annuities, perpetuities, uneven cash flows - USE TIME LINES!
- Explain the effects of compounding frequency on EAR-Translate APR to EAR
- Calculate mortgage and car payments - identify interest and principal components (of the first one or two payments)
- Present value and discounting, future value and compounding
- Annuities: ordinary (immediate or deferred) annuity, annuity due, perpetuity
- Compounding frequency, periodic rate, annual percentage rate (APR), effective (or equivalent) annual rate (EAR), amortized loan
ST-1, 3, 7, 30 (as well as many others)
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