(1) compound interest final value and compound interest present value;
(2) The final value of ordinary annuity and the present value of ordinary annuity;
(3) The final value and present value of early annuity.
First, the compound interest value at the end of the period and the compound interest value at present.
The time value of money is the basic knowledge of financial management, the key to learn financial management well, and the premise of learning investment management chapter well. The final value and present value of compound interest are the basis of learning the time value of money well.
(1) compound interest final value
Formula Name: Compound Interest Final Value
The calculation formula is f = p× (1+I) n, where f represents the final value, p represents the present value, I represents the interest rate, n represents the number of interest-bearing periods, and (1+I) n is the final value coefficient of compound interest, which is recorded as (F/P, I, n).
Formula explanation: the formula is the formula for calculating the final value under the condition of compound interest. The simplest and most direct understanding is that a sum of money was deposited in the bank at the beginning of the year (present value P), and what is the total amount of this money plus principal and interest at the end of the year (final value F).
Note that I here refers to the interest of the interest period, generally the annual interest rate, and n refers to the number of interest period periods, generally in years, or in quarters (interest period interest rate I = annual interest rate /4), months (interest period interest rate I = annual interest rate/12), weeks (interest period interest rate I = annual interest rate /52) and days (interest period interest rate I = this time)
(2) Present value of compound interest
Formula Name: Present Value of Compound Interest
The formula is p = f/( 1+I) n, where p stands for present value, f stands for final value, I stands for interest rate, n stands for the number of interest-bearing periods, and1(1+I) n is the present value coefficient of compound interest, which is recorded as (P/F, I, n).
Formula explanation: This formula is a formula for calculating the value of a future currency at the current moment under the condition of compound interest. The simplest and most direct understanding is how much a future sum of money (final value F) is worth now (present value P).
Note that I here refers to the interest of the interest period, generally the annual interest rate, and n refers to the number of interest period periods, generally in years, or in quarters (interest period interest rate I = annual interest rate /4), months (interest period interest rate I = annual interest rate/12), weeks (interest period interest rate I = annual interest rate /52) and days (interest period interest rate I = this time)
Second, the final value and present value of ordinary annuity.
Annuities include ordinary annuity, early annuity, deferred annuity and permanent annuity. Ordinary annuity is the most basic form of annuity, which refers to a series of payments received and paid in equal amount at the end of each period from the first period, also known as post-paid annuity.
If the first payment of an annuity occurs at the beginning of the first year, it is called an early annuity; For another example, if the annuity has the same amount in each period and is indefinite, it is called a perpetual annuity. Therefore, learning how to calculate the final value and present value of ordinary annuity is the basis for mastering other special annuity related operations.
(1) ordinary annuity final value
Formula Name: ordinary annuity Final Value
The formula f = a× (F/A, I, n), where f stands for final value, a stands for annuity, I stands for interest rate, and n stands for the number of interest-bearing periods. This is the final value coefficient of annuity, which can be obtained by looking up the coefficient table attached to the textbook and will be provided during the examination.
Description of formula: This formula is the formula for calculating the final value of annuity under the condition of compound interest. The simplest and most direct understanding is that a sum of money (annuity A) is deposited in the bank for 65,438+00 years at the end of each year, so what is the total principal and interest (final value F) after the money expires.
(2) The present value of ordinary annuity.
Formula Name: Present Value of ordinary annuity
The formula p = a× (P/A, I, n), where p stands for present value, a stands for annuity, I stands for interest rate, and n stands for the number of interest-bearing periods. This is the present value coefficient of annuity, which is recorded as (P/A, I, n). It can be obtained by looking up the coefficient table attached to the textbook and will be provided during the examination.
Description of formula: This formula is the formula for calculating the present value of annuity under the condition of compound interest. The simplest and most direct understanding is that a sum of money (annuity A) is deposited in the bank for 65,438+00 years at the end of each year, so what is the present value (present value P) after the money expires.
Third, the relationship between the final value and present value of ordinary annuity.
(1) Similarity: Both annuities occur at the end of the year, so they are both called ordinary annuity.
(2) Difference: The target time points calculated by the two methods are different. The target time of present value of ordinary annuity is the beginning of the first year, namely 0 in Figure 5, and the target time of final value of ordinary annuity is the end of the last year of annuity, namely 4 in Figure 5.
(3) the relationship between the coefficients (F/A, I, n) and (P/A, I, n): there is only one difference between the two coefficients, that is, P and F, and everything else is the same. Therefore, when the interest rate I and the number of periods n are the same, one is to calculate the value of the initial annuity, and the other is to calculate the value of the final annuity.
Extended data:
Compared with the traditional financial management methods in China, the new financial management method refers to a series of methods used to manage the financial activities (capital movement) of enterprises under the guidance of the general principles of enterprise finance and according to the provisions of the new financial system of enterprises. It is also the research object of this book. The specific contents of the new financial management measures include:
(1) Management methods of fund raising.
It mainly includes enterprise capital system, calculation methods of time value and investment risk value of capital, basic calculation methods of capital cost, enterprise debt management, etc.
(2) Management methods of current assets.
It mainly includes the management methods of cash and bank deposits, bad debt reserve system and accrual method, inventory valuation and inventory method, and amortization method of low-value consumables.
(3) management methods of fixed assets;
It mainly includes fixed assets valuation method, fixed assets depreciation method (according to the provisions of the new system, the commonly used depreciation methods include straight-line method, workload method, double declining balance method and life-cycle method) and construction in progress management method.
(4) Management methods of intangible assets, deferred assets and other assets.
(5) Measures for the administration of foreign investment.
It mainly includes the valuation method of foreign investment, the cost method of equity investment management, the lower of cost and market price, the equity method, the market price method, the straight-line amortization method and the real interest rate method.
(6) Cost management methods.
(seven) sales revenue, profit and distribution management measures.
(8) Measures for the administration of foreign currency business.
(9) Financial treatment method of enterprise liquidation.
(10) Financial report and financial evaluation.
It mainly includes the management and analysis methods of balance sheet, income statement and statement of changes in financial position, and the financial evaluation methods of enterprises (mainly solvency, operating ability and profitability).
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