Discounting at the Spread and Growing Annuities: A Note

Document Type

Article

Publication Date

Summer 2016

Publication Title

Journal of Economics and Finance Education

Abstract

In this note, the relationship between the present value and future value of growing annuities using the “discounting at the spread” method is exhibited. In addition, the work of Hall (1996) is extended, demonstrating a calculator solution for the future value of a growing annuity.

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