Finance Formulas Flashcards
1
Q
Simple Interest
A
A=P(1+in)
2
Q
Compound Interest
A
A=P(1+i)^n
or A=(1+i/n)^nt
3
Q
Simple Decay (straight line method)
A
A=P(1-in)
4
Q
Compound Decay (reducing balance)
A
A=P(1-i)^n
5
Q
Hire Purchase
A
Simple interest only
6
Q
Population Growth/Inflation
A
Compound interest only
7
Q
Nominal/Effective Interest Rate Formula
A
1+ieff=(1+inom/m)^m
8
Q
m variable
A
Compounding period
(months)
9
Q
i variable
A
Interest rate
10
Q
A
