Equations Flashcards
1
Q
Compound Interest
A
A = P(1+r/n) ^nt
2
Q
Simple Interest
A
A=P(1+rt)
3
Q
Rule of 72
A
t= 72/r
4
Q
Future Value of an Annuity
A
C=(((1+i)^n -1)/i)
5
Q
Nominal Rate of Return
A
Current investment value/ Original Investment Value
6
Q
Real rate of term
A
normal interest rate- of inflation (expected or actual)
7
Q
APR
A
(((fees+interest)/principle/number of days in loan term)x365)100
8
Q
Fisher Equation ( expresses the relationship between nominal interest rates, real interest rates, and inflation)
A
real interest rate ≈ nominal interest rate − inflation rate
