FINANCE FORMULAS
Basic Formulas
Simple Interest Formula Compound Interest Formula Annual Percentage Yield Future Value of an Annuity Present Value of an Annuity
A = P (1 + rt) A = P (1 + i)N AP Y = (1 + i)n − 1 FV A = P (1 + i)N − 1 i i W = LS 1 − (1 + i)−N
P = Principle i = r/n N = nt W = Withdrawal LS = Lump Sum
Mortgage Formulas
Monthly Mortgage Payment Interest Due on the Kth Payment Principle Due on the Kth Payment Balance After K Payments Equity After K Payments
i 1 − (1 + i)−N IK = M 1 − (1 + i)K−1−N M =L PK = M (1 + i)K−1−N 1 − (1 + i)K−N BK = M i EK = Cost of Home − BK
i = r/n N = nt M = Monthly Payment L = Loan Amount
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