# Finance by Tayeb0008

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```									                                 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=360)
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
A
I = Prt                                 A = P + Prt                         P=
(1 + rt )

Compound Interest
(P = principal)

Future Value                              Present Value                     Continuous Compounding
( e = 2.71828)
m⋅t
    r                                        A
A = P 1 +                               P=                                  A = Per⋅t        P = Ae−r⋅t
 m                                         r
m⋅t

1 + 
 m

Future Value: Annuities and Sinking Funds
(FV = future value, PMT = payment)

      r
m⋅t
                                            r     
  1 +  − 1                                                    
 m                                                        m
FV = PMT                                            PMT = FV               
       r                                                r
m⋅t

                                                    1 +  − 1
       m                                            m         

Present Value: Annuities and Amortization
(PV = present value, PMT = payment)

         r
− m⋅t
                                        r         
1 −  1 +                                                           
PV = PMT   m                                      PMT = PV         m        
        r                                                  r
− m⋅t

                                                  1 −  1 +         
        m                                           m              

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