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Unformatted text preview: Formulae • Simple Interest/Simple Discount/Compound Interest (1) S = P (1 + rt ) Accumulated value at simple interest (2) P = S (1- dt ) Discounted value at simple discount (3) S = P (1 + i ) n Accumulated value at compound interest (after n periods) (4) S = P ( 1 + j m m ) tm Accumulated value at interest compounded m times per year after t years (5) S = P e j ∞ t Accumulated value at interest compounded continuously (6) j = ( 1 + j m m ) m- 1 Effective annual rate of interest compounded m times per year (7) j = e j ∞- 1 Effective annual rate of interest compounded continuously • Ordinary Simple Annuity ( n payments of $1 at per-period interest rate i ) Discounted Value A = value one period before first payment = a n e i = 1- (1 + i )- n i Accumulated Value S = value immediately after n th payment = s n e i = (1 + i ) n- 1 i • Ordinary Simple Perpetuity (with payment R ) Discounted Value one period before first payment A = R i • Amortization Method: to amortize A with n periodic payments of...
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This note was uploaded on 03/03/2012 for the course MATH 170 taught by Professor F.vinette during the Fall '11 term at Wilfred Laurier University .
- Fall '11