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Financial formula sheet in simple interest, compound interest, effective rate, future value of ordinary annuities and sinking funds and annuities due.
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Simple Interest:
ܲ = Principal/Present Value ݎ = Annual Rate (decimal)
Compound Interest:
If your loan/investment is compounded m times per year:
௧ ܣ = Future Value/Maturity Value ܲ = Principal/Present Value ݎ = Annual Rate (decimal) ݉ = Number of Compounding Periods per Year ݐ = Time (years)
If your loan/investment is compounded continuously:
Effective Rate:
Use this to compute the effective rate if your loan/investment is compounded m times per year.
Use this to compute the effective rate if your loan/investment is compounded continuously.
Future Value of Ordinary Annuities & Sinking Funds:
The payment/deposit is at the END of the period. ܵ = Future Value/Total amount accrued ܴ = Payment/Deposit made in each period ݅ = rate per period (usually ݅ ൌ (^) ) ݊ = total number of times compounded (݊ ሻݐ ݉ൌ
Annuities Due:
The payment/deposit is at the BEGINNING of the period
Present Value of Ordinary Annuities & Amortization:
The payment is made at the END of the period. P = Present Value ܴ = Payment made in each period ݅ = rate per period (usually ݅ ൌ (^) ) ݊ = total number of times compounded (݊ ሻݐ ݉ൌ