Appendix: Glossary of Formulas and Definitions
No. | Formula | Definition |
1. |
|
Simple interest |
2. |
|
Future value of simple interest |
3. |
|
Present value of simple interest |
4. |
P = S(1 – dt) |
Present value of simple discount |
5. |
|
Future value of simple discount |
6. | Compound interest | |
7. | Compound discount at discount rate | |
8. | Effective rate | |
9. | D = Sdt | Bank discount |
10. | List price x Discount rate | Trade discount |
11. | Future value of an ordinary annuity | |
12. | Present value of an ordinary annuity | |
13. | Future value of an annuity due | |
14. | = | Present value of an annuity due |