FIN 306 NPV mid term exam-1 | fall 2025/26 Update with complete solutions.
Future Value of A Dollar ✔️PV (1+i)^n
Present Value of a Dollar ✔️FV/ (1+n)^n
Future Value of an Annuity ✔️C [ (1+i)^n - 1/i]
Present Value of an Annuity ✔️Annuity [1 - 1/(1+i)^n]/i
Present Value of a Growing Perpetuity ✔️PVgp = c / r - g
Future Value of Annuity Due ✔️= P [(1+i)^n -1/ i] x (1+i)
Current Ratio ✔️Current Assets/Current Liabilities
Future Value of Growing Annuity ✔️P [ (1+i)^n - (1+g)^n/ r - g]
PV of a Growing Annuity ✔️= [1- ((1+g)/(1+i))^n/ i - g]
Quick Acid Test Ratio ✔️Quick Assets/Current Liabilities
Cash Flow as a TVM ✔️[PV (1+i/)^n - FV]
/
[(1+i)^n-1/ i]
*answer will be negative because it is cash out of pocket
Rule of 72 ✔️Basically, it is a function that related your interest rate and the time it takes to double your
money. When you divide 72 but the interest rate, you get the time it takes to double your money. When
you divide 72 by the time it takes to double your money, you get the interest rate necessary to make
that possible.
Rule of 144 ✔️Same as the rule of 72, but calculates the information for how long it takes to quadruple
your money
Interest Rate ✔️Interest Rate = (FV/PV)^1/t
N ✔️ln(FV/PV)/ln(1+i)
Property Tax ✔️After you calculate the value of the home after figuring out how much the loan was for,
you just multiple by the tax rate and then divide by months (if she wants it monthly)
Market Capitalization ✔️(Market price of a stock) X (number of current shares outstanding)
Future Value of A Dollar ✔️PV (1+i)^n
Present Value of a Dollar ✔️FV/ (1+n)^n
Future Value of an Annuity ✔️C [ (1+i)^n - 1/i]
Present Value of an Annuity ✔️Annuity [1 - 1/(1+i)^n]/i
Present Value of a Growing Perpetuity ✔️PVgp = c / r - g
Future Value of Annuity Due ✔️= P [(1+i)^n -1/ i] x (1+i)
Current Ratio ✔️Current Assets/Current Liabilities
Future Value of Growing Annuity ✔️P [ (1+i)^n - (1+g)^n/ r - g]
PV of a Growing Annuity ✔️= [1- ((1+g)/(1+i))^n/ i - g]
Quick Acid Test Ratio ✔️Quick Assets/Current Liabilities
Cash Flow as a TVM ✔️[PV (1+i/)^n - FV]
/
[(1+i)^n-1/ i]
*answer will be negative because it is cash out of pocket
Rule of 72 ✔️Basically, it is a function that related your interest rate and the time it takes to double your
money. When you divide 72 but the interest rate, you get the time it takes to double your money. When
you divide 72 by the time it takes to double your money, you get the interest rate necessary to make
that possible.
Rule of 144 ✔️Same as the rule of 72, but calculates the information for how long it takes to quadruple
your money
Interest Rate ✔️Interest Rate = (FV/PV)^1/t
N ✔️ln(FV/PV)/ln(1+i)
Property Tax ✔️After you calculate the value of the home after figuring out how much the loan was for,
you just multiple by the tax rate and then divide by months (if she wants it monthly)
Market Capitalization ✔️(Market price of a stock) X (number of current shares outstanding)
