Ch 3 · Time Value of Money

5 concept points · 6 formulas · 4 exam-critical points.

🧮 Formula sheet

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