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Finance is the study of value
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Value creation: time + uncertainty
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PV = Present valuePV(rate, NPER, PMT, FV, type)E.g., FV of $1 held for 1 year at 10% annual interest-$1.10
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FV = Future valueFV(rate, NPER, PMT, PV, type)E.g., PV of $1.10 held for 1 year at 10% annual interest$1.00
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n = # of periods
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r = Interest rate (%)$500 at 7% annual interest rate for 10 years-$983.58
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FV of investing $100 at 10% vs 5% for 100 years:
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10%-$1,378,061.23
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FV = P + r*P5%-$13,150.13
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Formulae syntax:
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http://support.google.com/docs/bin/static.py?hl=en&topic=25273&page=table.cs&ctx=tooltip
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FV of $24 at 6% interest rate for (2012-1626) years-$140,693,888,847.34
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