Summary: 1/18
Chapter 2. Cashflows.
Manual for SOA Exam FM/CAS Exam 2.
Chapter 2. Cashflows.
Section 2.1. Cashflows.
c 2009. Miguel A. Arcones. All rights reserved.
Extract from:
"Arcones' Manual for the SOA Exam FM/CAS Exam 2,
Financial Mathematics. Fall 2009 Edition",
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
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Chapter 2. Cashflows. Section 2.1. Cashflows.
Net present value of cash flows
Recall that a cashflow is a series of payments made at different
times. We can represent a cashflow in a table:
Investments C1 C2 · · · Cn
Time (in periods) t1 t2 · · · tn
Assuming compound interest, the present value of a cashflow at
time t is

Source: Arcones, Miguel A. - Department of Mathematical Sciences, State University of New York at Binghamton

Collections: Mathematics