Ch 3 · Time Value of Money

🧮 Formula sheet

1. 1.SI = (P × R × T) / 100
2. 2.CI: A = P(1 + r/100)ⁿ
3. 3.PV = FV / (1 + r)ⁿ
4. 4.FV of Annuity (ordinary) = A × [((1+i)ⁿ − 1) / i]
5. 5.PV of Annuity (ordinary) = A × [(1 − (1+i)⁻ⁿ) / i]
6. 6.Effective Rate = (1 + r/m)ᵐ − 1