Financial income.

Financial rental operations are characterized by the execution of payments or collections.

periodically over time. The periodicity must be the same (annual, monthly...)

A financial rent is a set of capitals whose maturities occur from

periodic form.

There can be waiting periods, for example in pension plans, not contributing.
capital in various periods or in the mortgage, not paying installments due to economic problems.

2. Variables involved in the calculation of income.

Duration of the rent (n): it will match the number of capitals of it. Time and the
Interest rates will always refer to the same unit of time.

Interest rate (i): always effective interest rates, whether annual or fractional
(monthly, quarterly...). We must convert the nominal interest rate into an effective rate using
the following formulas:

To calculate the effective interest rate from a fractional one:

=( + ) −

To calculate the fractional effective interest rate from the annual one:

=( + )−

To transform the nominal interest rate to the effective fractional rate:

The term (a): corresponds to each of the capitals that make up the income. It
is usually referred to as collections or payments. The frequency of the payment of the term is what will decide
In what units will time and interest rate be expressed? If the term is paid.
monthly, the time will be expressed in months and the interest rate will be a certain amount
monthly cash.

-V0current value of a rent Sum of the value of each of the capitals that
they make up the income.

-VnFinal Value of a lease sum of the final value of each of the capitals that
form the rent.

The financial value of a rent is the result of bringing all the capitals to a
moment of determined time.

1
 3. Classification of incomes.

According to the nature of the According to the periodicity of According to the expiration of the According to the beginning and the end
According to the duration
capitals expiration terms of the rent

Constant rents: everyone Prepaid rents or by Immediate rents: the Temporary rentals: they have
Annual rent: between capital
the capitals have the and the capital passes through a
anticipated: the terms first rental period a finite number of
same amount. year. they overcome the principle of starts at the stage in capitals.
each period (rent). that the operation is agreed upon.
Variable rents. The Rent fractionated Perpetual rents: they have
capitals are different. less than a Postpayable rents (to Advance rents: the rent a finite number of
It can be random or not year. months defeated) the finalizes several periods capitals. (pension of
(according to percentage of terms expire at the end after the expiration retirement
arithmetic progression Periodic rentals of each period from the last capital. ( plan of
superior to the year: it passes mortgage loan, the pensions, not contributing to them
more than a year (biennial, installments are paid at the end of last installments, but yes
triennial...) every month) interest is produced or
profitability

Deferred rents: the first

payment is made after
various periods since that
the operation will begin. (no
start paying until
in three months).

2
4. Constant rents at compound interest

4.1. Constant, immediate, and postpayable rent.

They have terms of the same amount (constant), the term expires at the end of the first
period (deferable) and the beginning and end of the operation coincide with the maturity of the
first and last term (immediate).

a. Current value of an annuity.

1 - (1 + i)−
0 = ∙( )

b. Final value of a rent.

V= V0(1 + i)n
(1 + i) - 1
= ∙( )

c. Calculation of the number of terms of an annuity (n)

(∙ )+1
=
log(1 + i)

Calculation of the amount of a rent term (a)

0
=
1 - (1 + i)−
( )

4.2. Constant, immediate, and prepayable rent.

a. Calculation of the present value. In this type of annuities, it is always necessary to calculate it first.
place.

1 -1 (+ i )−
0 = ∙( ) (1 + i)

b. Calculation of the final value of an annuity.

V= V0(1 + i)n

( 1 + i-)1
= ∙( ) (1 + i)

3
4.3. Constant and deferred rent.

a. Calculation of the present value of a deferred payment annuity: n= number of terms; d= periods of
deferment

1 −1(+ i )−
0 = ∙( ) (1 + i)−

b. Calculation of the final value of a deferred payable annuity:

Vn= V0(1+i)n+d
c. Calculation of the deferrable term payable:

=
−( + )−
( )∙( + )−

a. Calculation of the present value of a prepaid deferred annuity:

1 −1(+ i )− −
0= ∙( ) ∙ (1 + )(1 + i)

b. Calculation of the final value of a prepayable deferred annuity:

Vn= V0(1+i)n + d
c. Calculation of the amount of the prepaid deferred term:

=
−( + )−
( )∙( + )∙( + )−

4.4. Constant advance rent

This operation concludes or is valued after the last term expires.
rent.
V0 =V0 of an immediate rent · (1+i)n+h
Vn= V0(1+i)n+h
h = lead times
n= terms of the rent.
a. Calculation of the present value of a constant, prepaid, and postpayable annuity.

1 - (1 + i)−
0 = ∙( )

4
b. Calculation of the final value of a constant, advance and postponable annuity.

Vn= V0(1+i)n+h

4.5. Perpetual rent

It is one that has infinite terms and has no end. It makes no sense to calculate its value.
final but if its initial value.

1
= ∙

They grant us a loan to be repaid within 10 years through annual payments.

the first payment occurring two years later. Therefore, the cancellation is
It will be produced in 2029, the first payment will not be made until 2022, and the duration will be 10.
years with a deferral of 2 periods (n=10-2=8)

We repay a loan through 10 annual installments (n), with the 1st of them occurring 2 years later.
Elapsed since the start of the operation. In this case n=10 and the deferral will be 2.