Greedy Blog

Thursday, January 20, 2005


Outstanding
 
Brownie points to the first to figure out the problem with this analysis in my Analytical Methods supplement:
$1.06 is known as the future value of $1 invested for one year at 6 percent. By the same logic we can say that $.94 invested today at 6 percent will yield $1 in one year. The $.94 is the present value of $1 to be received in one year when the interest rate is 6 percent.


Emphasis in original.
I'm also annoyed by the lack of "%" use and the decimal without a 0.

For the record, that was taken from Robert C. Higgins, Financial Management: Theory and Applications (1997) p. 41.

Posted by Gel 9:59 AM Post a Comment

Real Friends' Blogs
Random Rantings
Fancy Dirt
Force Paintball

Locations of visitors to this page

Other Blogs
Instapundit
Baseball Musings
Patently-O
Tim Blair
Volokh
Mark Steyn
Chris Lynch
Donald Luskin
Neal Boortz

Links
UT School of Law
UA ChEE
Jim Rome

Powered by Blogger
Listed on Blogwise