Simple Interest 𝐹 = 𝑃 (1 + 𝑖)

where in n =
Ordinary Simple Interest 𝑑
𝑛= 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 30 𝑑𝑎𝑦𝑠 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡h
360
Exact Simple Interest 𝑑
𝑛=
365 𝑜𝑟 366
𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡h𝑒 𝑒𝑥𝑎𝑐𝑡 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡h
Compound Interest
NR/𝑖𝑛 = Nominal Rate 𝑁𝑅
𝐹 = 𝑃 (1 + 𝑖)𝑛 𝑤h𝑒𝑟𝑒 𝑖𝑛 𝑖 =
𝑚
P = Principal 𝑁𝑅 𝑛
𝐹 = 𝑃 (1 + )
𝑚
𝑁𝑅 𝑚(𝑦𝑟𝑠)
𝐸𝑅 = 𝑃 (1 + )
𝑚
𝐸𝑅 = (1 + 𝑖)𝑚 − 1
𝑁𝑅 𝑚
𝐸𝑅 = (1 + ) −1
𝑚
Forward (1 + 𝑖)𝑛
Backward (1 + 𝑖)−𝑛
Conversion to NR to EF?/𝑖𝑒 𝑖𝑛 𝑚
(Effective Rate) 𝑖𝑒 = (1 + ) − 1
𝑚
Compounded Continuously 𝑖𝑒 = 𝑒 𝑖 − 1
w/ Inflation 𝐹 = 𝑃 (1 + 𝑖)𝑛 (1 − 𝑓)𝑛
Monthly 12
Bimonthly 6
Quarterly 4
Semi-Annually 2
TYPES OF ANNUITIES 𝑛 = 𝑛𝑜. 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠
𝑛
Ordinary Annuity 1 − (1 + 𝑖)−𝑛
Present 𝑃=𝐴 [ ] 𝑖𝑛 𝑐𝑎𝑙𝑐𝑢: 𝑃 = 𝐴 ∑(1 + 𝑖)−𝑥
𝑖
𝑥=1
Future 𝑛−1
(1 + 𝑖)𝑛 − 1
𝐹=𝐴 [ ] 𝑖𝑛 𝑐𝑎𝑙𝑐𝑢: 𝐹 = 𝐴 ∑(1 + 𝑖)𝑥
𝑖
𝑥=0
Annuity Due 𝐴 [(1 + 𝑖)𝑛 − 1]
𝑃= +𝐴
𝑖(1 + 𝑖)𝑛
DEPRECIATION METHODS
Straight Line Method 𝐷 = 𝐹𝐶 − 𝑆𝑉 ; 𝐷 = 𝐶𝑜 − 𝐶𝑙
Total Depreciation
Annual Depreciation 𝐹𝐶 − 𝑆𝑉 𝐶𝑜 − 𝐶𝑙
𝑑= ; 𝑑=
𝑛 𝐿
𝑜𝑟 𝑦𝑜𝑢 𝑐𝑎𝑛 𝑢𝑠𝑒 𝑖𝑛𝑡𝑒𝑟𝑝𝑜𝑙𝑎𝑡𝑖𝑜𝑛
Sinking Fund Method (𝐹𝐶 − 𝑆𝑉)𝑖 (1 + 𝑖)𝑛 − 1
Annual Depreciation 𝑑= ; 𝐶𝑜 − 𝐶𝑙 = 𝑑 [ ]
(1 + 𝑖)𝑛 − 1 𝑖
Declining Balance Method 𝑛 𝑠𝑣
Total Depreciation 𝐷 = 𝐹𝐶 − 𝑆𝑉 ; 𝑘 =1− √
𝐹𝐶
𝑜𝑟 𝑦𝑜𝑢 𝑐𝑎𝑛 𝑢𝑠𝑒 𝑖𝑛𝑡𝑒𝑟𝑝𝑜𝑙𝑎𝑡𝑖𝑜𝑛
Sum of Years Digit Method 𝑛(𝑛 + 1)
Sum of Years 𝑆. 𝑂. 𝑌 =
2
Depreciation (𝐹𝐶 − 𝑆𝑉)
𝑑1 = 𝑛
SOY
(𝐹𝐶 − 𝑆𝑉)
𝑑2 = (𝑛 − 1)
SOY
(𝐹𝐶 − 𝑆𝑉)
𝑑3 = (𝑛 − 2)
SOY
𝑜𝑟 𝑦𝑜𝑢 𝑐𝑎𝑛 𝑢𝑠𝑒 𝑖𝑛𝑡𝑒𝑟𝑝𝑜𝑙𝑎𝑡𝑖𝑜𝑛