Just found out this little tidbit doing some Becker C3 study on my own:
pv of yr 1 + pv of yr 2 + pv of yr 3 = pv of an annuity for 3 years.
Long Cash Flow with a common denominator, use the root and solve for the rest.
For Example Cash Flows by year of $120k, 80k, 40k, 40k, 40k (no annuity data, only pv of a $ .91, .76, .63, .53, .44, respectfully ) Also included was totals of $300k and 3.27 respectfully.
The Fast Way: 40k*3.27 (5 year annuity of 40$) + 80k*.91 (additional 80$ in yr 1) + 20k*.76 (additional 20 in yr 2) = 218,800
Ain't Nobody got Time for that way: 120k*.91+60k*.76+40k*.63+40k*.53+40k*.44=218,800 (pv of each year)
Even if Annuity data was given you would have to calculate the pv of the annuity, and then pv that lump back an additional 2 years which is still more work then just doing one annuity and then calculating the additional "off" years.
Anyone else use this trick? or is it wrong and how?
Have any other time saving tips? Every Second Counts as I think I have a measly 40 wpm