M107_U4_Finance Equations

What formula do you use when you invest MULTIPLE amounts regularly compoundly?

• @@FV=rac{pymtig(ig(1+iig)^n-1ig)}{i}@@

• @@FV=pmt imes rac{(1+i)^n}{i}@@

• @@FV=rac{pmt imes i}{(1+i)^n}@@

• @@FV=pmt imes (1+i)^n@@

• Annual Yield

• Annual Percentage Rate

• Average Profit Yield

• Adjusted Profit Yield

What formula do you use when you invest ONE amount compoundly?

• @@FV=P(1+i)^n@@

• @@FV=P(1+i)@@

• @@FV=P(1+i/n)^{nt}@@

• @@FV=P(1+rt)@@

• Interest PAID on a loan

• Total amount borrowed

• Monthly payment amount

• Loan principal amount

• Add-On-Loan monthly payment

• Principal payment

• Interest payment

• Total payment

• Interest earned from ONE investment

• Total amount invested

• Annual percentage yield

• Future value of the investment

• Interest earned from MULTIPLE investments (aka annuity)

• Interest earned from a single investment

• Total interest paid over time

• Interest rate for a loan

What formula do you use when you find future value and invest ONE amount simply?

• @@FV=P(1+rt)@@

• @@FV=P(1+r)^t@@

• @@FV=P(1+rt^2)@@

• @@FV=P(1+r/t)@@

• Amortized Loan Payment

• Principal Payment

• Interest Payment

• Total Payment

What formula(s) do you use when you have an Add-On Loan?

• Simple interest: @@FV=P(1+rt)@@ and also: @@pymt=\frac{FV}{n}@@

• Compound interest: @@A=P(1+r/n)^{nt}@@

• Discounted cash flow: @@DCF=\frac{CF}{(1+r)^n}@@

• Amortization: @@A=\frac{P \cdot r(1+r)^n}{(1+r)^n-1}@@