#summary #tvm
It is possible to calculate an unknown variable, given the other relevant variables in time value of money problems.
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The present value, PV, is the future value, FV, times the present value factor, (1 + r) − N .
The present value of a perpetuity is A/r, where A is the periodic payment to be received forever.
<span>It is possible to calculate an unknown variable, given the other relevant variables in time value of money problems.
The cash flow additivity principle can be used to solve problems with uneven cash flows by combining single payments and annuities.
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