Formulas Flashcards
(7 cards)
1
Q
Simple interest
A
A= P(1+rt)=P+I
2
Q
Compound interest
A
A=P(1+r/n)^t*n
3
Q
Continuous compounding
A
A=Pe^rt
4
Q
Effective annual yield and continuously compounding effective yield
A
Y=((1+r/n)^n)-1= (e^r)-1
5
Q
Value of annuity, An
A
Annuity=P[((1+r/n)^nt)-1] / (r/n)
6
Q
Loan payment formula for fixed installment loans, PMT
A
PMT= P(r/n) / [1-((1+r/n)^-nt)]
7
Q
Annual fuel expense formula
A
Annual miles*price per gallon / miles per gallon
