Simple Interest: P is the present value or loan amount, A ...



Financial Formulas

Simple Interest: P is the present value or loan amount, A is the future value or total amount, r is the annual interest rate as a decimal, t is the time in years, and I is the interest earned.

|Interest |Future Value |Present Value |Interest Rate |Time in Years |

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| | | |Or |Or |

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Compound Interest: P is the present value or loan amount, A is the future value or total amount, r is the annual nominal interest rate as a decimal, m is the number of compounding periods per year, n is the total number of compounding periods, I is the total interest earned, and t is the time in years.

|Rate Per |Future |Total Interest |Present |Effective |

|Period |Value |Earned |Value |Rate |

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|Or |Or |Or |Or | |

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|Number of Compounding |Time in Years | | | |

|Periods | | | | |

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Continuous Compound Interest: P is the present value or loan amount, A is the future value or total amount, r is the annual nominal interest rate as a decimal, I is the total interest earned, and t is the time in years.

|Future Value |Present Value |Nominal Rate |Total Interest Earned |Effective Rate |

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| |Or | | | |

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|Time in Years | | | | |

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Ordinary Annuity: Pmt is the payment, FV is the future value, PV is the present value, i is the interest rate per period as a decimal, n is the total number of payments, and t is the amount of time in years.

|Future Value |Payment or Sinking Fund |Present Value |

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|Total Number of Payments |Time in years | |

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Amortization: PV is the loan amount, Pmt is the payment, B is the remaining balance on the loan, i is the interest rate per period as a decimal, n is the total number of payments, IPmt is the interest portion of a payment, PPmt is the principal portion of a payment, I is the total interest paid, and t is the time in years.

|Payment |Balance after k payments |Interest Portion of the kth Payment |

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| |Or | |

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|Principal Portion of the kth Payment |Loan Amount |Number of Payments |

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|Time in Years |Total Interest Paid |

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| |Or |

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