7/25/2019 Basic and Laws for FM

1/2

It only gives the very details. ***Use Books for more.

***Its only for 21+ people. If you cant handle the F word than dontread it.

Basic law of Financial management & only Basic. ;)

Single Cash Flow

Fv= (1 ) Fv= 1 ** Future value for single cash flow.And use n only if there iscompounding.Pv =

(+) Pv = (+)** Present value for single cash

flow. And use n only if there is

compounding.

t =loglog(+) r = 1

Multiple Cash Flow

FvA= {(1)1 } FvA= (1) 1 ** Its future value of multiple cash

flow. And use n only if there is

compounding.

PvA = () PvA= ()

**Its Present value of multiple cash

flow. And use n only if there is

compounding.

FvA = (+) (1 r)** Its future value of multiple cash

flow, just multiple (1+r) when it saysat the beginning.

** Use nonly if there

is compounding. Usethe previous format.

PvA= () (1 r) ** Its future value of multiple cashflow, just multiple (1+r) when it saysat the beginning.

** Use nonly if there

is compounding. Use

the previous format.

PvGA = [ 1 (+)(+)] ** Present value of multiple cashflow but only when there is a growthwhich is indicated by g. ** Use nonly if thereis compounding. Usethe previous format.

FvGA =

(+)

(+)

** Future value of multiple cash flow

but only when there is a growth

which is indicated by g.

** Use nonly if there

is compounding. Use

the previous format.

For EMI

EMI= (+) ** This one will find out the Equalmonthly installment for you. HereA indicates the main value or the

loaned amount.

**Well, you donthave

to use n factor here

because as you see its

already used.

A=

(+)(+)

** This one will find out the principle

amount of EMI for you. Here P

indicates the cash flow or the

monthly installment.

**Well, you donthave

to use nWHY!!!

;) LOL

7/25/2019 Basic and Laws for FM

2/2

It only gives the very details. ***Use Books for more.

***Its only for 21+ people. If you cant handle the F word than dontread it.

Perpetuity ** Itsthat sort of shit in life which never ends. Likeforever stupidly. Or cash flow. Whatever fits u better.

PvP= ** This one use for Perpetual type cash flow.

And also for bond and stock. When cash flowgoes for forever like a never ending sex.

Kiddingthere is no such thing called never

ending sex. But there is forever cash flow.

** Use n if needed

like before.** Forget about gif

there is no growth

orno productionLol :p

Bond

** In short itsa debt instrument.

In details its thereturns u make on ur GF. It could be lifetime or

could last for yrs/mnths depends on the relation. U could get

nothing at first bt after that it will give u the eggs.

Pv (Bond) =

() Fv+t ** Use nasbefore.** This will help u if ur returns r for only a

limited period of time like for yrs/mnths.Yeeeh Its the best to have multiple

relations..

** But u have to use PvPif u got luckier. Yeee.. Itsbetter than the bestto have a lifelong

FOREVER relation.

Share ** Not much different incalculation from bond.

YTM =+

2

** Its thereturn on ur investment. How much u will

get frm ur relations will be calculated frm here.

R= ( ) ** It will give u the return rate after eliminating therisk rate. Like if u hv multiple GF/BF at the sametime or extramarital relationship, than it will show

u the return rate after eliminate the chances of

getting caught.