Financial mathematic formula sheet, Cheat Sheet of Financial Accounting

Download Financial mathematic formula sheet and more Cheat Sheet Financial Accounting in PDF only on Docsity! Formulas for Finance Math m = the number of compunding periods per year. (annually m=1, semiannually m=2, quarterly m=4, monthly m=12, daily m=365) r = the annual interest rate as a decimal. (12% = 0.12) t = the time in years. (6 months = 0.5 years) Simple Interest (P = principal) Simple Interest Future Value Present Value I = Prt A = P + Prt P A rt = +( )1 Compound Interest (P = principal) Future Value Present Value Continuous Compounding ( e = 2.71828) A P r m m t = +    ⋅ 1 P A r m m t= +    ⋅ 1 A = Per⋅t P = Ae−r⋅t Future Value: Annuities and Sinking Funds (FV = future value=S, PMT = payment=R) FV PMT r m r m m t = +    −                 ⋅ 1 1 PMT FV r m r m m t=     +    −             ⋅ 1 1 Present Value: Annuities and Amortization (PV = present value=P, PMT = payment=R) PV PMT r m r m m t = − +                    − ⋅ 1 1 PMT PV r m r m m t=     − +                − ⋅ 1 1