Financial Keys
May 3rd, 2009
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.