Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

FM-financial mathematic formula sheet, Cheat Sheet of Financial Accounting

FM formula sheet include interest rate and time value of money, geometric series, annuities, arithmetic’s annuities, varying the payment frequency and sinking fund loan. From the university of texas at dallas.

Typology: Cheat Sheet

2021/2022

Uploaded on 02/07/2022

virgyn67
virgyn67 🇺🇸

4.3

(10)

228 documents

1 / 14

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe

Partial preview of the text

Download FM-financial mathematic formula sheet and more Cheat Sheet Financial Accounting in PDF only on Docsity!

Module 3 - Interest Rates and the Time Value of Money Page Mi- 47 Section 1.14 Formula Sheet a(t): accumulated value at time i of an initial investment of 1 made at time 0 A(t): accumulated value at time ft of an initial investment of A(G) made at time 0 For simple interest at a constant rate i: a(t) =14t-i AQ) = A()-(1+t-i) For compound interest at a constant rate i: at) =(1+ pt = eh man) A(t) = A)(1+ a = A(Bera-e FV =PV(i+i)" —— d=i-v vei-d isi i . a d= d=t ao, i-d=id Ti ” Tra ae S=In(l+i) e =hti att)=e" G+" =e” pt =(1+i)" =e" For a variable force of interest: 6®= oe ai)= lesen Equivalent Rates: jon) \™ (mj \* )\? tvi-(1452) [2] --@| m m p Note the negative exponent, -p. : 6 = lim (i) =lim(a') di) Quoted Rates for Treasury bills: US. T-bills: Quoted Rate = 360 Amount of Interest Days to Maturity * Maturity Value 365 Amount of Interest Canadian T-bills: Quoted Rate = ————___ x ——-" Days to Maturity Current Price Rule of 72; At an effective interest rate of x% per period, an investment will double in about 72/ x periods. ‘ACTEX Learning oo “Exam FM - Financial Mathematics Dinius, Hassett, Ratliff, Garcia, & Steeby