inance -
test revision
simple interest ; f- =P ( it i.nl Given
compound interest ; F =P ( I + it Given simple →
compound conversion
Percentage of payments
( It i. n ) ( Iti )
"
total paid ( X me of pay 1=x
'
=
a g .
✓ -
cap reduction
= OG -
OB = y
linear exponential
( simple ) ( compound )
a ieff -
: % ✗ 100
'
Nominal to effective annual interest
>
-
Effective annual to nominal interest in ; D. a compounded . . .
daily weekly , , monthly
-
Effective annual to effective per period
s ¥ ; not p.ci ; p.cl/p.m1p.w
I t ieff = ( I + In
Total paid for loan ;
Nominal per one period to effective per another period Deposit + x.me of payments
(i + In =
( it ¥7m Interest
a
Total paid -
original cost
j
Depreciation ( scrap values
Fv =
Pv ( I -
in ) s
straight line Sinking Fund
Fv Pv ( i r balance New Cost Old
reducing
= I - s -
cost
,
f- ( bookvalue )
g
Given
↳ series
Annuities
of EQUAL payments at
regular intervals
} NB 9
Fv
Future
=
✗ [C
value
l t
i
i )n
annuity
-
I]
{
if the x; payment per period
payment is n ; number of payments
v
Present value annuity OANS ! ! ! made immediately i : effective interest per period ( In )
ay , , gg in , , , , man ,
↳ among ,.gg, ,
pa , , ay, , ,, ya , ,, , ya , u ,
K [ I ( i ti ) n
]
-
-
Pv =
i of n ( e. g. 8 years = 96 months 1- I = 97
assumes there is a
gap
between loan & first payment
value of gets rounded up Future value annuity due
Bank loan É hire purchase
.
↳ made at the
beginning of each time period
↳ Present value e.g.
beginning of every month NB
↳ Hire purchase =
simple interest
✗ [( I 1- i )n -
I]
Fv= i ✗ ( I + is
Outstanding Balance
1) Present value of amounts us . difference between the loan
"
@ Tk and the future value (safe option)
✗ [ ' ' +"
}
✗[ I -
( Iti )
-
in -
K,
] -
']
OB =
OB =
Pull + i )K -
i use when you don't know
i
ne of payments ( n value )
test revision
simple interest ; f- =P ( it i.nl Given
compound interest ; F =P ( I + it Given simple →
compound conversion
Percentage of payments
( It i. n ) ( Iti )
"
total paid ( X me of pay 1=x
'
=
a g .
✓ -
cap reduction
= OG -
OB = y
linear exponential
( simple ) ( compound )
a ieff -
: % ✗ 100
'
Nominal to effective annual interest
>
-
Effective annual to nominal interest in ; D. a compounded . . .
daily weekly , , monthly
-
Effective annual to effective per period
s ¥ ; not p.ci ; p.cl/p.m1p.w
I t ieff = ( I + In
Total paid for loan ;
Nominal per one period to effective per another period Deposit + x.me of payments
(i + In =
( it ¥7m Interest
a
Total paid -
original cost
j
Depreciation ( scrap values
Fv =
Pv ( I -
in ) s
straight line Sinking Fund
Fv Pv ( i r balance New Cost Old
reducing
= I - s -
cost
,
f- ( bookvalue )
g
Given
↳ series
Annuities
of EQUAL payments at
regular intervals
} NB 9
Fv
Future
=
✗ [C
value
l t
i
i )n
annuity
-
I]
{
if the x; payment per period
payment is n ; number of payments
v
Present value annuity OANS ! ! ! made immediately i : effective interest per period ( In )
ay , , gg in , , , , man ,
↳ among ,.gg, ,
pa , , ay, , ,, ya , ,, , ya , u ,
K [ I ( i ti ) n
]
-
-
Pv =
i of n ( e. g. 8 years = 96 months 1- I = 97
assumes there is a
gap
between loan & first payment
value of gets rounded up Future value annuity due
Bank loan É hire purchase
.
↳ made at the
beginning of each time period
↳ Present value e.g.
beginning of every month NB
↳ Hire purchase =
simple interest
✗ [( I 1- i )n -
I]
Fv= i ✗ ( I + is
Outstanding Balance
1) Present value of amounts us . difference between the loan
"
@ Tk and the future value (safe option)
✗ [ ' ' +"
}
✗[ I -
( Iti )
-
in -
K,
] -
']
OB =
OB =
Pull + i )K -
i use when you don't know
i
ne of payments ( n value )
