Exam 1 Formula Sheet - Formula Sheet for FIN 300 Exam 1 = Lump-sum Ordinary annuities = = cfw = = Annuities due = = cfw = Logarithms = Effective Rate m

Exam 1 Formula Sheet - Formula Sheet for FIN 300 Exam 1 =...

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Formula Sheet for FIN 300 – Exam 1 Lump-sum: 𝑭𝑽 = 𝑷𝑽 ( 𝟏 + 𝒊 ) 𝒏 Ordinary annuities: 𝑷𝑽 𝒐𝒇 𝒐𝒓𝒅𝒊𝒏𝒂𝒓𝒚 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 = 𝑪 𝒊 �𝟏 − 𝟏 ( 𝟏 + 𝒊 ) 𝒏 𝑭𝑽 𝒐𝒇 𝒐𝒓𝒅𝒊𝒏𝒂𝒓𝒚 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 = 𝑪 𝒊 {( 𝟏 + 𝒊 ) 𝒏 − 𝟏 } Annuities due: 𝑷𝑽 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 𝒅𝒖𝒆 = ( 𝟏 + 𝒊 ) 𝑷𝑽 𝒐𝒓𝒅𝒊𝒏𝒂𝒓𝒚 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 = ( 𝟏 + 𝒊 ) 𝑪 𝒊 �𝟏 − 𝟏 ( 𝟏 + 𝒊 ) 𝒏 𝑭𝑽 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 𝒅𝒖𝒆 = ( 𝟏 + 𝒊 ) 𝑭𝑽 𝒐𝒓𝒅𝒊𝒏𝒂𝒓𝒚 𝒂𝒏𝒏𝒖𝒊𝒕𝒚 = ( 𝟏 + 𝒊 ) 𝑪 𝒊 {( 𝟏 + 𝒊 ) 𝒏 − 𝟏 } Logarithms: 𝐥𝐧 𝒂 𝒏 = 𝒏 𝐥𝐧 𝒂 Effective Rate: 𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆 𝒂𝒏𝒏𝒖𝒂𝒍 𝒓𝒂𝒕𝒆 ( 𝑬𝑨𝑹 ) = �𝟏 + 𝑨𝑷𝑹 𝒎 𝒎 − 𝟏 m = # of compounding periods per year APR = annual “quoted” rate