Management and Organizational Studies 2310A/B Lecture Notes - Lecture 4: 0 (Year)

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Nicholas Kahnert

Document Summary

Quick quiz-part 1: find future value for each year (make a timeline) and then add them all up > fv= pv (1+r)t = Annuities and perpetuities: annuity: nite series of equal payments that occur at regular intervals, if the rst payment occurs at the end of the period, it is called an ordinary annuity, ex. Paying back a loan at the end of the rst month, rst period end: if the rst payment occurs at the beginning of the period, it is called an annuity due, ex. Rent you prepay rst and last months rent: ex. Equal monthly payments on a car: ex. Lease on house, paying rent every month: perpetuity: in nite series of equal payments that occur at regular intervals (never end, ex. So if you have year 1 it would be at year 0, if you were at year 4 it would be at year 3)