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Financial Keys

Lots of students are confused about what the financial keys means.  Let me define them here:

N – number of periods

I/Y – effective interest rate per period (assuming C/Y and P/Y is 1)

PV – cash flow at time 0

PMT – cash flow at time 1, 2, …, N (or 0, 1, …, N-1 for BGN mode)

FV – cash flow at time N

The sign of the cash flow is negative for a cash outflow and positive for a cash inflow.  I hope that clears things up.

James Student Questions

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