accounting- appendix C

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Present Value

= FV / (1 + r) ^ n

Future Value

= PV * (1 + r) ^n

Future Value of Annuity

= Payment * E (1 + r) ^ n-1

Annuity

At the end of EACH year!

Present Value of Annuity

Payment * E [ 1 / (1 + r) ^n ]

Simple Interest

You don't earn interest on the interest: interest rate x unpaid principle balance

Compound Interest

You earn interest on the interest

Rule of 72

the number of years it would required to double your money at a given interest rate. 72 / compound interest ratio


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