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FormulaSheet (1)

# FormulaSheet (1) - 8 Effective Rate of Interest(1 1 k E i...

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Formula Sheet for the Final Exam 1. Circle : 2 2 2 ( ) ( ) x h y k r - + - = 2. Parabola (Quadratic function): 2 2 ( ) ( ) , ( ) or 2 4 b b y f x a x h k h k f h k c a a = = - + = - = = - 3. Distance formula: 2 2 2 1 2 1 ( ) ( ) d x x y y = - + - 4. Quadratic formula : 2 4 2 b b ac x a - ± - = For the following formulas : S is future value, P is present value, r is the annual interest rate, k is the number of compounding periods in a year, t is time in years, A is the amount of money, and R is the amount of payment; with the formula for the periodic interest rate r i k = . 5. Future Value of an Investment with continuously compounded interest: rt S Pe = (The amount at the end of an investment when an amount P is allowed to grow with interest compounded continuously.) 6. Future Value of an Investment: (1 ) kt S P i = + (The amount at the end of an investment when an amount P is allowed to grow.) 7. Present Value of an Investment: (1 ) kt P S i - = + (The amount that must be invested now to provide for a future value.)

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Unformatted text preview: 8. Effective Rate of Interest : (1 ) 1 k E i = +-(The effective rate for an account.) 9. Future Value of an Annuity: (1 ) 1 kt i S R i +-= (The amount at the end for an ordinary annuity with regular payments.) 10. Present Value of an Annuity: 1 (1 ) kt i P R i- - + = (The present value of an ordinary annuity with regular payments.) 11. ‘Sinking Fund’ Payment for an Annuity: (1 ) 1 kt Si R i = +-(The amount of a payment that will provide a future value of an ordinary annuity.) 12. Amortization Formula (Installment Payments): 1 (1 ) kt i R A i- = -+ (The amount of an installment payment when the amount borrowed is A .)...
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