Thursday, January 7, 2010

Payment Calc How Do You Calculate Present Values When Your Cash Flows Occur More Frequent Than The Interest Rate Period?

How do you calculate present values when your cash flows occur more frequent than the interest rate period? - payment calc

Suppose you have cash flow of $ 500 will be tightened in all the 6 months to 6 years (a total of 12 payments) and the rate of 10% per year.

How do I calculate the PV of each cash flow? I just had an interest rate and divided by 2 and that the rate calc. the SRP?

Thank you.

1 comment:

topgun said...

Lower the interest rate increase by half, and the period, twice that number.

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