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TVM Cheat Sheet Cheat Sheet (DRAFT) by

FIN 531 Cheat Sheet

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Variable Key

FV = Future value of an investment
PV = Present value of an investment (the lump sum)
r = Return or interest rate per period (typically 1 year)
n = Number of periods (typically years) that the lump sum is invested
PMT = Payment amount
Cn = Cash flow stream number

Equation guide

Future value of a lump sum:
FV = PV x (1 + r)n
Future Value of an Ordinary Annuity
FV = PMT x { [ ( 1 + r )n - 1 ] / r}
Future Value of an Annuity Due
FV (annuity due) = PMT x { [ ( 1 + r)n -1 ] / r } x (1 + r)