University:
San Jose State University
Course:
MATH 70 | Mathematics for Business
Academic year:

2022
Views:

384

Pages:

1
Author:

Nevaeh Bauer

Formulas for Finance Math m = the number of compunding periods per year. (annually m=1, semiannually m=2, quarterly m=4, monthly m=12, daily m=365) r = the annual interest rate as a decimal. (12% = 0.12) t = the time in years. (6 months = 0.5 years) Simple Interest (P = principal) Simple Interest I = Prt Future Value Present Value A = P + Prt P= A (1 + rt ) Compound Interest (P = principal) Future Value r  A = P 1 +   m Present Value m⋅t P= Continuous Compounding ( e = 2.71828) A r  1 +   m A = Per⋅t m⋅t P = Ae−r⋅t Future Value: Annuities and Sinking Funds (FV = future value=S, PMT = payment=R) m⋅t   r   1 +  − 1  m  FV = PMT    r        m     r      m   PMT = FV m⋅t   r   1 +  − 1   m  Present Value: Annuities and Amortization (PV = present value=P, PMT = payment=R) − m⋅t    r 1 −  1 +    m   PV = PMT   r        m     r      m   PMT = PV − m⋅t    r 1 −  1 +     m 

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