Page 16 - FINAL CFA SLIDES JUNE 2019 DAY 2
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LOS 6.e: Calculate and interpret the FV & PV of a Session Unit 2: The Time Value of Money
single sum of money, an ordinary annuity, an annuity
due, a perpetuity (PV only), and a series of unequal
cash flows. PV and FV of Uneven Cash Flow Series
Ex: Computing PV of an uneven cash flow series: Compute the
Ex: Computing the FV of an uneven cash flow series PV of this uneven cash flows using a 10% rate of return.
Using r = 10%, compute the FV of the 6-year uneven cash
flow stream as below at the end sixth year.
