Solving for Unknown TVM Variables
Free SOA Exam FM (Financial Mathematics) lesson in Time Value of Money. 14 min read, ~2,048 words.
Four TVM variables: PV, FV,. Given any three, solve the fourth via. Solve for:. Take the -th root; never divide the ratio by. Solve for:. This is the only variable requiring logarithms. Solve for PV: multiply by the discount factor. Variable force: integrate over, not.
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 1b
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