Ch 3 · Time Value of Money

5 concept points · 6 formulas · 4 exam-critical points.

⭐ Important points (exam-critical)

• ⭐Annuity due = ordinary annuity × (1 + i).
• ⭐Perpetuity PV = A / i (no time limit).
• ⭐Doubling: by Rule of 72 → years ≈ 72/r (only for CI).
• ⭐Use log tables when n is large in CI — ICAI calculators not allowed.