Calculations Flashcards
1
Q
Time Value of Money
A
Change in Price of units (Value - cost)/Original Cost X 100 = Percentage Increase
2
Q
Compound Interest
A
Present Value (invested) x (1+ rate/100) square by no of years = Future Value
Use Xy on the calculator to get the square of no. of years
3
Q
Compound Rate of Return
A
No of years square root the future value/present value - (minus) 1 = Rate
use y square root of x on the calculator.
4
Q
Discounting
A
Future Value/(1 + rate/100) square by no of years = Present Value (to Invest
5
Q
Phase Investment Compounded
A
Regular value (PV) X
(1 + rate) squared by no of years X (1 + rate) then divide/ rate = Future Value
6
Q
Annual Percentage/Equivalent Value
A
1 + (rate/100 then divide by no or term)
then - minus 1 = APR (x100)
