Att )= alda tilt accumulated at time t. Assume the same interest rate , i throughout per year n ) : time . in. This shows how i. is , in determines attn ) ) kits ;) - d is no ) ( hi ;) . ( hi ;d. Shows how to get is knowing : att ;) - atta , , ah accumulated amount at the interest accumulated during year j the beginning of year j. Definition : you know the value of the investment in 5 years and the interest rate . You want to know the value of thisinvestment today . on known. In particular, if ahhk then alo) : kit where kit is the present value of k ( the value of investment at t ) Definition : equation of value ii )t x ( 1 whiffing or x=yit. O x : value of investment at time 0 y= i.
