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
