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Mathematical Finance formulas, Study notes of Mathematical finance

Umm Al-Qura University (UQU)Mathematical finance

Mathematical Finance formulas. • Simple interest rate. A = P (1 + rt). • Compound interest rate. A = P. (. 1 + r m. )n. • APY. AP Y = (. 1 + r m. )m. − 1.

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Uploaded on 09/07/2022

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Download Mathematical Finance formulas and more Study notes Mathematical finance in PDF only on Docsity! Mathematical Finance formulas • Simple interest rate A = P (1 + rt) • Compound interest rate A = P ( 1 + r m )n • APY APY = ( 1 + r m )m − 1 • Future value of an annuity FV = PMT ∗ (1 + i)n − 1 i • Present value of an annuity PV = PMT ∗ 1− (1 + i)−n i

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