MS303 - formula sheet

MS303 - formula sheet - i fc : rate of return in terms of a...

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Discrete Compounding (F/P,i%,N) (1+i) N (F/A,i%,N) i i N 1 ) 1 ( - + (P/A,i%,N) N N i i i ) 1 ( 1 ) 1 ( + - + (F/G,i%,N) i N N i A F i - ) %, , / ( 1 (gradient) (A/G,i%,N) 1 ) 1 ( 1 - + - N i N i (gradient) (P/G,i%,N) + - + - + N N N i N i i i i ) 1 ( ) 1 ( 1 ) 1 ( 1 (gradient) (P/A 1 ,i%,N) f i f i A N N - + + - - ) ) 1 ( ) 1 ( 1 ( 1 if i f (geometric gradient) 1 1 ) 1 ( - + i N A if i f = CW(i%) = A/i (Capitalized worth) Continuous Compounding (F/P,r %,N) e rN (F/A,r %,N) 1 1 - - r rN e e (P/A,r %,N) ) 1 ( 1 - - r rN rN e e e Before tax marginal cost: TC k (i%)=MV k-1 -MV k +iMV k-1 +E k After tax marginal cost: TC k (i%)=(1-t)(MV k-1 -MV k +iMV k-1 +E k )+(i)(t)(BV k-1 ) (1+i c )=(1+i r )(1+f) i c : combined interest; i r : real interest; f :inflation (1+i fc )=(1+i us )(1+f e ) i us : rate of return in terms of combined interest rate relative to US dollars;
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Unformatted text preview: i fc : rate of return in terms of a combined interest rate relative to foreign currency; f e : annual devaluation rate between US dollars and foreign currency, (positive f e means foreign currency is devalued) Effective interest rate i when number of compounding periods per year is M and annual nominal interest rate is r; i=(1+r/M) M-1 Conditional Probability Pr(A|B)=Pr(A and B )/Pr(B) =Pr(B|A)Pr(A)/Pr(B) Var(X)=E(X 2 )-E(X) 2...
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