Annuities in advance and in arrears, sinking funds, present and future value, and perpetuities P = R/i

What this note covers

1. Identify the cash-flow timing
2. Find the future value of regular deposits
3. Plan a sinking fund
4. Use present value for an income stream or loan
5. Understand and calculate a perpetuity
6. Compare streams and verify the model

6 sections · 10 key terms & formulas · 6 common mistakes