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Formulas

The document provides formulas for calculating simple interest, continuous compound interest, future amounts, maturity values, compound interest, and future values of ordinary annuities. It includes notes on how to convert time into months and days for accurate calculations. Key variables such as principal (P), rate (r), and time (t) are defined for various financial calculations.

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iam.matteo03
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7 views1 page

Formulas

The document provides formulas for calculating simple interest, continuous compound interest, future amounts, maturity values, compound interest, and future values of ordinary annuities. It includes notes on how to convert time into months and days for accurate calculations. Key variables such as principal (P), rate (r), and time (t) are defined for various financial calculations.

Uploaded by

iam.matteo03
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FORMULAS

Simple interest: Continuous Compound Interest:


I = Prt A = Pemt

Note:
time in months, t= months/12
time in days (exact), t = days/365
time in days (ordinary), t = days/360
Future Amount/Accumulated Amount/ Effective Rate of Interest:
R = [ 1+ mj ] −1
m
Maturity Value:
A = P(1 + rt)

Note:
time in months, t= months/12
time in days (exact), t = days/365
time in days (ordinary), t = days/360
Compound Interest: Future Value of an Ordinary
[ ]
mt
A=P 1+
j
m
Annuity:
S = [ ( 1+ii) −1 ]
n

j
Note: i= m and n=t ∙ m

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