BUS 14A Ch 5 Equations PDF

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Chapter 5 Equations  Simple Interest

I = P rt   Future/Maturity Value for Simple Interest

A = P (1 + rt)   Compound Interest

A = P (1 + i) n   Effective Rate

r E = (1 + i) m − 1   Present Value

P = (1 +Ai) n



 Continuous Compounding

A = P e rt   Future Value of an Ordinary Annuity n R[(1 + i) − 1] S =  i

 Sinking Fund Payment R = [(1 + Si i) n − 1]



 Future Value of an Annuity Due

R[(1 + i) n + 1` − 1] S = − R i

 Present Value of an Ordinary Annuity R[1 − (1 + i) −n ]  P = i

 Amortization Payments Pi R =  [1 − (1 + i) −n ] 

 Key P r m t A n i S R

is the principal is the annual interest rate is the # of compounding periods per year is the number of years is the future(maturity) value is the # of compounding periods is the interest rate per period is the future value is the periodic payment...