Page 68 - CFA - Day 1 & 2 Course Notes

LOS 6.e: Calculate and interpret the Session Unit 2: The Time Value of Money
future value (FV) and present value (PV)

of a single sum of money, an ordinary PV and FV of Uneven Cash Flow Series

annuity, an annuity due, a perpetuity (PV Ex: Computing PV of an uneven cash flow series
only), and a series of unequal cash flows. Compute the present value of this 6-year uneven cash

flow stream described above using a 10% rate of return.
Ex: Computing the FV of an uneven cash flow series
Using r = 10%, compute the FV of the 6-year uneven
cash flow stream as below at the end sixth year.