Cheat Sheet 2, Study notes of Accounting

Download Cheat Sheet 2 and more Study notes Accounting in PDF only on Docsity! Cheat Sheet 2 Math 141 Let A = accumulated balance after Y years P = starting principal APR = annual percentage rate (as a decimal) n = number of compounding periods per year Y = number of years (may be a fraction) PMT = regular payment (deposit) amount a = inflation rate (a decimal) i = interest rate (a decimal) Simple Interest Formula0: A = P ∗ (1 + APR ∗ Y ) Compound Interest Formula:(1 + APR n )nY Annual Percentage Yield: APY APY = (1 + APR n )n − 1 Formula for Continuous Compounding:A = P ∗ eAPR∗Y Savings Plan Formula: A = PMT ∗ [(1+APR n )nY −1] APR n Total and Annual Return: totalreturn = A−P P annualreturn = ( A P )(1/Y ) − 1 Current Yield of a Bond: current yield = annual interest payment current price of bond Loan Payment Formula: PMT = P ∗ APR n» 1−(1+APR n ) (−nY ) – The CPI Formula CPIX CPIY = priceX priceY The Present Value of a principal P, Y years into the future, r=APR, a=annual inflation: A = P ∗ [ 1+r 1+a ]Y Real Growth g: g = r−a 1+a Real Growth over Y years: g(Y ) = [1 + r−a 1+a ]Y − 1 The Tax Table: single m(joint) m(separate) head household 10% 1 - 7,550 1-15,100 1 - 7,550 1-10,750 15% 7,551 - 30,650 15,101 - 61,300 7,551 - 30,650 10,751 - 41,050 25% 30,651 - 74,200 61,301 - 123,700 30,651 - 61,850 41,051 - 106,000 28% 74,201 - 154,800 123,701 - 188,450 61,851 - 94,225 106,001 - 171,650 33% 154,801 - 336,550 188,451 - 336,550 94,226 - 168,275 171,651 - 336,550 35% 336,551+ 336,551+ 168,276+ 336,551+ 1